Foreign airlines cut fares, woo India

Only a few months after India signed the 'Open Skies' treaty with the United States and the United Kingdom, major international airlines are queuing up to operate flights to India with irresistible offers like lower air fares and direct non-stop flights.

The tourism ministry is hoping to attract around 4 million foreign tourists in 2005 and about 10 million tourists by the end of 2010. It is the Open Skies policy that will cater to this rush combined with a booming economy. "Ninety-five per cent of the foreign tourist arrivals in India is by air, and the Open Skies policy will act as an air bridge," says Subash Goyal, president, Indian Association of Tour Operators.

The Open Skies agreement was signed in April, replacing the decades-old pact which restricted flights, destinations and airfares. And the results are already beginning to show.

Continental Airlines is offering a non-stop round trip flight between New Delhi and Newark for just around Rs 40,000, while American Airlines is starting flights to India at almost the same price in November. And the competition is hotting up further with domestic airlines like Jet Airways and Air Sahara being given permission to operate flights to the US and the UK.

"It is not just the foreign tourists coming to India who will fuel the growth of air traffic. . . a large number of students and information technology professionals and tourists from India too will take advantage of this liberalised environment," says Gagan Uberoi, director of a travel company.

With the increase in flights, now foreign airlines will be able to operate flights from software hubs -- like Bangalore, Chennai and Hyderabad -- facilitating faster travel for professionals between India and the US.

Already, Delta Airlines is planning flights from Chennai to New York, and Northwest Airlines has sought permission for flights between Minneapolis and Bangalore.

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These flights will not only make business travel easy from these destinations, but will also help a large number of Indian software professionals in the US to fly home more frequently. According to the tourism ministry, last year, more than 3 million tourists visited India -- a 27 per cent growth in terms of inflow and a 36 per cent growth in terms of revenue.

The ministry now has ambitious plans to attract foreign tourists. It has already begun to release advertisement campaigns, like 'Incredible India', in foreign publications. It is also holding road shows in various countries, promoting rural tourism, and offering visa-on-arrival for tourists from many nations.

"We are a country with 5,000 years of evolution and the world simply cannot ignore us. India should be ready to be the number 1 tourist destination in the world," says Renuka Chowdhary, Union Minister for Tourism.

With India being the flavour of the season in the US, the ministry hopes that big-spending Americans would come to India in large numbers. India attracts more than 500,000 British tourists anually -- the highest number from a single country -- but this is all set to change with Americans crossing the 600,000-mark this year. Fares of domestic airways are hitting new lows and with even international fares dropping, industry professionals agree that for air travellers the sky is the limit.