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Business >> Saturday November 15, 2008
 
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Indian budget carrier eyes Thailand links

BOONSONG KOSITCHOTETHANA

Bangkok is on the international itinerary of the New Delhi-based budget carrier IndiGo with a possible start of scheduled air service between Thailand and India next year.

IndiGo, based in New Delhi, is considering linking Bangkok with main Indian cities such as Kolkata, Mumbai, Bangalore and Delhi.

The Thai capital will be the first among overseas destinations being planned by IndiGo as it spreads its wings across the Indian borders after fulfilling the regulations requiring a local airline to serve Indian domestic routes for three years before being allowed to fly overseas.

IndiGo, which took to the skies in August 2006, has been contemplating linking Bangkok with main Indian cities such as Kolkata, Mumbai, Bangalore and Delhi, according to Pavin Sachaphimukh, chairman of Nancy Group Company.

The Bangkok-based travel management firm Nancy Group was recently appointed as IndiGo's passenger sales agent in Thailand, a move seen as groundwork preparations for its planned launch of air link with Thailand.

Thailand-India has been a high-potential sector for IndiGo, owned by InterGlobe Enterprises, because of the continued robust traffic between the two countries.

The global credit crunch and Thailand's protracted political problems have not deterred Indian tourists, with as many as 800,000 expected to visit this year, Mr Pavin pointed out.

According to the Tourism Authority of Thailand, the kingdom is the second most popular Asian destination among Indians. Last year, 536,356 Indians visited Thailand, second only to Singapore, which attracted 749,000.

By planning to launch its services to Thailand, IndiGo is moving to take advantage of the relatively untapped travel segment between the two shores - the low-cost one - to cater to budget-conscious travellers such as youths and students.

The two countries are current served by four airlines: Thai Airways International, Jet Airways, Cathay Pacific and Air-India Express, which are altogether offering about 90 flights a week.

IndiGo is establishing a network of overseas agents, first tasked to sell tickets on its domestic routes now covering 17 cities in India.

The economic slowdown and decline in passenger numbers have forced several airlines to look at pruning costs including deferring deliveries of aircraft, cutting back on routes and laying off staff.

But IndiGo officials claimed that they have been seeing healthy growth in passenger numbers and had no plans to defer delivery of any of the remaining 100 A320 family aircraft it has ordered from the European plane maker Airbus.

The airline operates 100 daily domestic flights with 20 Airbus jetliners and plans to serve about 30 Indian cities by 2010, with a fleet of 40 A320s.

IndiGo is due to receive all 100 Airbus jets by 2016.


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