These are Jetstar Asia, Tiger Airways, Value Air, all based in Singapore, Malaysia's Air Asia and Thailand's Phuket Airlines.

"We are looking forward to commencing services to Kolkata in the next few months," Paul Daff, head of strategy and network, Jetstar Asia Airways, told Business Standard. As a result, air fares to Southeast Asian countries are expected to crash.

"With competition increasing in the Southeast Asian skies, we can expect prices to crash," said a leading travel agent based in Mumbai.

Flights to the region have so far been dominated by the national carriers of the respective countries: Air-India, Singapore Airlines, Malayasian Airlines, Thai Airways and Cathay Pacific. But here too, national carriers have been in a dogfight for market share.

Singapore is understood to have held bilateral talks with India and demanded an additional 200 slots in India for Singapore Airlines. Sources said the talks had fallen through. Singapore Airlines operates around 38 flights a week between India and Singapore.

While it operates daily flights out of several Indian cities, it now wants to operate two flights a day from Mumbai, Delhi, Chennai, Bangalore, provided it gets government approval.

Indian private airlines like Jet Airway and Air Sahara, too, have started flying to the region.

Fares to Southeast Asian nations range between Rs 14,000 and Rs 20,000. Singapore Airlines' fare for the Mumbai-Singapore sector is Rs 18,280.

Air-India offers a fare of around Rs 14,100. A return ticket on the Mumbai-Bangkok route costs Rs 19,350 on Singapore Airlines, Rs 18,000 on Cathay Pacific and Thai Airways and Rs 14,000 on Air-India.

Low-cost carriers like Jetstar Asia, Tiger Airways and Value Air are expected to offer flights at half the fares.

But the established airlines say there is room enough for everyone. Said BK Ong, general manager (India), Singapore Airlines: "With trade relations between the two countries increasing, the market is growing big enough to absorb the expected increase in capacity. The market is growing at the rate of around 30 per cent and is largely driven by business traffic."

Jetstar Asia is a partnership among Qantas (49 per cent); several businessmen and Singapore's Temasek Holdings (19 per cent). Tiger Airways is owned by Singapore Airlines, Temasek Holdings and several businessmen.

Orient express

• A slew of budget airlines from SE Asia planning flights to India
• New wings Singapore-based Jetstar Asia and Tiger Airways, Malaysia's Air Asia and Thailand's Phuket Airlines
• Local action Indian private airlines like Jet Airway and Air Sahara, too, have started flying to the region