Low Cost Airlines Vs. Indian Railways: Heating Competition, Melting Prices

The continuing fare tussle between the Railways and the Low-cost airlines has changed the contemporary scenario for the Indian traveller. A ticket on India's low-cost carrier (LCC) has made flying, once confined to the rich and elite, an affordable reality for the hordes of Indians travelling across the country.

It has taken some time for the low-cost airline industry to carve a niche for themselves, but the wallet-friendly LCCs are here to stay.

When Air Deccan introduced airfares almost equalling the AC II-tier train fares, the response from the leading domestic airlines like Indian Airlines, Jet Airways and Sahara Airlines was immediate. Slashed rates and Advanced Purchase schemes (Apex) swiftly began to take shape, resulting upto 30 to 40 per cent slashed fares compared with the original prices.

Barely a year after Air Deccan took off came the launch of Vijay Mallya