FDI Aviation

Air Aisa - Tata will break the 'cosy cartel' and offer cheaper fares. True low-cost carriers stimulate the market and expand the consumer base. For the first time in the country, year-on-year total passengers flown have shrunk. It is unimaginable in an exploding economy like India. IndiGo Airlines, a well-run airline, grew by cannibalising passengers from other airlines, especially Kingfisher, Air India and even Jet, but not by creating a new market

Jet Airways's Naresh Goyal himself doled out some statistics last year. The domestic airfare for a journey of more than 2,000 km is 87 per cent higher in China, 119 per cent more in the US, 162 per cent higher in Canada and 182 per cent more expensive in Australia.