Since Tuesday morning, SpiecJet, IndiGo are in a race to offer discounted tickets for advance purchases this quarter and Air India may also join the party soon. January-March one of the leanest quarters for airlines in India so slashing advance purchase prices helps airlines get confirmed occupancy on flights. Besides, it also helps in generating cash which can then be ploughed back into working capital needs.
Industry sources said IndiGo had joined the fare war but there was not confirmation from the airline itself. These sources also said that Air India may follow and offer hugely discounted fares for travel between February 15 and March 31. It is interesting to see that airlines, which have been suffering increasing costs and are in line for another disastrous quarter, have resorted to short term discounts once again. An industry veteran said these kind of sales do not really either generate any sizeable amounts of cash for the airline or ensure adequate loads. "We don't know how many seats each airline will offer under such discounts.
Besides, even under normal circumstances, 30-day advance purchase fares are close to half the price of spot fares so this is not so much a discount as it is a marketing gimmick". But Sharat Dhall, President of travel portal Yatra.com said this was an attempt by airlines to get early bookings for the summer season. "SpiceJet and Indigo slashing airfares for advance purchase across sectors is an attempt to garner early bookings for the coming summer season. The airlines are offering airfares as low as Rs 3,355 for the Delhi-Mumbai route where the spot fares are as high as Rs.10,098. With other airlines likely to follow suit, travellers are finally getting a respite from the high airfares and will take advantage of these great prices to book their holidays in advance.”
Read more at: http://www.firstpost.com/business/air-india-indigo-may-also-cut-fares-to-keep-up-with-spicejet-1350791.html?utm_source=ref_article
Industry sources said IndiGo had joined the fare war but there was not confirmation from the airline itself. These sources also said that Air India may follow and offer hugely discounted fares for travel between February 15 and March 31. It is interesting to see that airlines, which have been suffering increasing costs and are in line for another disastrous quarter, have resorted to short term discounts once again. An industry veteran said these kind of sales do not really either generate any sizeable amounts of cash for the airline or ensure adequate loads. "We don't know how many seats each airline will offer under such discounts.
Besides, even under normal circumstances, 30-day advance purchase fares are close to half the price of spot fares so this is not so much a discount as it is a marketing gimmick". But Sharat Dhall, President of travel portal Yatra.com said this was an attempt by airlines to get early bookings for the summer season. "SpiceJet and Indigo slashing airfares for advance purchase across sectors is an attempt to garner early bookings for the coming summer season. The airlines are offering airfares as low as Rs 3,355 for the Delhi-Mumbai route where the spot fares are as high as Rs.10,098. With other airlines likely to follow suit, travellers are finally getting a respite from the high airfares and will take advantage of these great prices to book their holidays in advance.”
Read more at: http://www.firstpost.com/business/air-india-indigo-may-also-cut-fares-to-keep-up-with-spicejet-1350791.html?utm_source=ref_article
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