Iceland’s budget airline Wow Air on Tuesday announced the launch of its services from Delhi to multiple destinations in North America and Europe via Reykjavik from December this year, which will start at a fare of Rs. 13,499. The one way fair under the ‘Wow basic’ includes all taxes but excludes meal and check-in baggage, which will be charged separately.
Wow Air, which would be flying an Airbus A330 Neo to India and operate five days a week, currently serves 39 destinations across Europe and North America including London, Paris, New York, Toronto, Baltimore, San Francisco and Chicago.
Passengers travelling to the US will have a stopover at Reykjavik — acting as a hub for the airline — and then take a Wow flight to the US.
What it means for the Indian travellers?
Flying passengers across continents and oceans for a fraction of a cost is fast emerging as the next big thing in aviation. Once ridiculed in the industry, the budget model for long-haul flights have gained global traction in recent times, with the rise of a slew of carriers like Norwegian Air Shuttle ASA, which transformed itself from flying winter-weary Scandinavians to southern Europe to a global behemoth connecting Oslo to New York and Stockholm to Bangkok.
For price conscious Indian travellers, international air travel is becoming more affordable. About 20,000 Indians travel to North America on a daily basis and they will have more choice of travel.
India will overtake U.K. to become the third-largest aviation market with 278 million passengers by 2025, according to International Air Transport Association. The market will contribute $172 billion to the nation’s economy, more than doubling from the current $72 billion, according to IATA.
Airline industry to be negatively impacted
InterGlobe Aviation (CMP: Rs1206, MCap: 46344 cr) & Jet Airways (CMP: Rs445, MCap: 5054 cr) which fly overseas to be negatively impacted.