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AirAsia sparks fare war with first India flight

Published on Jun 8, 2014 12:40 PM

NEW DELHI (AFP) - Asia's biggest budget carrier AirAsia is set to make its maiden Indian flight this week, fuelling a cut-throat fare war in a sector already reeling from losses.

AirAsia India will take off on Thursday with an eye-catching promotional fare of 990 rupees (S$21) for flights between high-tech hub Bangalore and the popular coastal resort of Goa - cheaper than a second-class train ticket.

"The price war has already begun and will only intensify in the lean July-September quarter," Amber Dubey, partner at global consultancy KPMG, told AFP.

The carrier's founder and chief executive Tony Fernandes - a millionaire ex-music executive who styles himself as Asia's answer to British tycoon Richard Branson - is a hardened discount-fare warrior.

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