Associated Press

NEW DELHI, Aug 1:  A new budget airline in India on Monday announced its first plane would take to the skies on August. 4, cashing in on the country's aviation boom.
IndiGo is to offer low-cost air travel, focusing on such routes that have been ignored by existing budget carriers, said Bruce Ashby, President and Chief Executive of the new airline.

 Budget airlines hit the Indian skies two years ago – starting with Air Deccan, an airline launched by former pilots at India's state-owned carrier. About a half-dozen, low-cost carriers have since been launched, but their coverage largely remains limited to such major cities as New Delhi, Bangalore, Bombay and Madras.

The availability of low-cost airlines coupled with rising middle class incomes has led to a surge in air travel in India. While domestic passenger traffic is growing 25 per cent annually, the pace is faster in smaller cities.

Indigo's maiden service will begin on August 4 with a flight from New Delhi to Guwahati, the main city in India's northeast, that will fly further to the frontier town of Imphal.

One-way fares between New Delhi to Guwahati - covering a distance of about 1,500 kilometers (900 miles) - start from 2,549 rupees ($55). By 2010, the airline aims to operate between 30 Indian cities with 40 Airbus A320s.