AirAsia India, the first airline with foreign investment to operate in India, is set to take off today.
The airline has been set up by one of Asia’s biggest low-cost carriers and India’s Tata Group.
The carrier’s promise to become the “lowest-cost” airline in India has triggered a fresh price war in the sector.
AirAsia India has offered tickets for as low as $17 for its maiden flight between Bangalore and Goa, cheaper than the train fare for a second-class air conditioned cabin.
AirAsia India chief executive Mittu Chandilya said the model had worked in similar markets for the past 12 years.
“We believe that we will be able to bring that kind of discipline to India as well,” he said.
India opened up its aviation market to foreign investment in 2012 in an attempt to boost growth in the sector and the overall economy.