WOW air is making is debut in India with rock bottom economy tickets.

In an exclusive interview with CNBC-TV18, Skúli Mogensen, Chief Executive Officer, WOW air, said a return ticket from Delhi to north America via Iceland will cost around Rs 25,000-27,000.

But this is an introductory offer as ticket prices are likely to change on account of rising oil prices.

A one way ticket will cost a passenger Rs 13,499 for an indirect flight to Europe and north America.

But here is a catch: this fare does not include meal and baggage cost unlike other long haul flights.The airline will have five direct flights a week to Iceland and then connect to multiple destinations in Europe and north America.

The airline CEO said, "If you find a cheaper flight that this I will pay the difference."

Mogensen explains that fares will be much lower compared to competitors even after adding meals and baggage cost to the base fare of Rs 13,499.

"We connect 15 different destinations via Iceland like New York, Boston, Chicago etc. My goal is to lower fares and you will continue to see great prices if you book in advance. We have four different fare classes but fares will be significantly lower than competitors once you include food and baggage," explained Mogensen.

Spike in oil prices has been a worry for airlines across the globe. WOW air is confident of maintaining lower fares despite the spike.

"Oil prices will impact fares around the globe. We have the youngest fleet and will be using Airbus 330 Neo for New Delhi flights. These are fuel efficient as they are brand new, which also means lower operating cost for us," added Mogenson.

Slot constraints at Delhi airport remains a concern for this Iceland-based budget airline.

WOW air is awaiting approval for the final slots from the Delhi airport authorities.

In fact, the airline management has been seeing a case of slot constraints across global airports especially New York.

WOW air intends to expand its network in Asia with New Delhi being launched as the first destination.

New destinations in Asia will be announced within twelve months.

The airline did not disclose which Indian cities are on the radar but hinted that connecting metros like Mumbai, Bangalore, Chennai and Hyderabad to Europe and north America will be their goal in next one year.

The airline has been growing at 50% year-on-year and the company expects to have a $700 million turnover by the end of this fiscal followed by one billion next year.

Mogesen believes in being extremely cautious about his decisions as he is the sole owner and shareholder of the airline.

The airline aims to make Iceland "the Dubai of the North" and when asked if strategic alliances are on the cards, Mogesen said, he is looking at alternatives like bond markets, listing and alliances to raise capital but nothing has been finalised yet.

First Published:May 16, 2018 1:38 PM IST