Fare wars break out, as IndiGo and SpiceJet outdo AirAsia's inaugural offers

MUMBAI: After SpiceJet, India's number 1 carrier IndiGo also followed AirAsia's rock bottom air fare offers, by launching its own Re 1 base fares.

"The no 1 airline brings you the lowest of low fares. Fly from Bangalore to Chennai and Goa for just Re 1!," a post on the airline's Twitter handle said.

On Friday, AirAsia announced all-inclusive fares of Rs 990 and base fares of Rs 5 on these sectors. A day before, SpiceJet launched fares of Rs 1,499 on the Bangalore-Goa and Bangalore-Chennai routes.

"Competition will be aggressive; Indian carriers have a track record of engaging in unsustainable fare discounting and an unusual willingness to bear losses," Kapil Kaul, south Asia CEO of Sydney-based consultant CAPA-Centre for Aviation said in a recent note.