Low-cost Indian airline SpiceJet said it would launch cut-rate domestic flights this month to lure travelers from popular train services and expected to post a profit within six months.

SpiceJet will operate its first commercial flight on Monday. Its three Boeing 737-800s will be all-economy class.

"The fares will be slightly higher than AC (air conditioned) train fares," chief executive Mark Winders said. "We believe there is a tremendous opportunity in the low cost model in India. The air market is dramatically underserved here."

SpiceJet said its most expensive fares were 55-60 percent cheaper than regular full economy fares of competitors such as Jet Airways, India's largest domestic airline. SpiceJet will also offer more than 9,000 seats for as low as 99 rupees (USD$2.30) each for the first 99 days of operations.

Rockbottom fares by SpiceJet and rival Air Deccan are helping the nascent and newly liberalized market expand on similar lines as Europe, which surged after the entry of carriers such as Ryanair and easyJet.

Winders expects cheap fares to fuel expansion in India in the same way rockbottom tariffs stoked its mobile telecoms sector, the world's fastest growing wireless market.

He said SpiceJet will have six planes by the end of the year and may lease more to meet demand for air travel, forecast to grow 20 percent annually over the next five years.

"I'm hoping we will see a positive contribution to profit after six months of operations," Winders added.

About 19 million people traveled by air in India in the fiscal year to end-March, according to industry data -- just a fraction of its billion-plus population.