Cut in airfares likely amongst Indian carriers

Queenfisher · Post by **Queenfisher** » 21 May 2005, 18:58

The party is getting bigger for those aspiring to fly. The entry of two more players into the buzzing aviation market, that too in quick succession, is triggering off another round of fare cuts –– this time by the established players, too.

Airfares are scheduled to hit yet another low –– especially in the case of ‘hot’ destinations like Mumbai, Bangalore, Delhi, Goa and Ahmedabad –– as Indian Airlines, Jet Airways and Air Sahara are under pressure to ‘align’ their fares to market rates.

The ‘launch enthusiasm’ of Spicejet is also putting legacy carriers under notice. Though the tendency is to wish away the promotional fares as gimmicks, all three legacy carriers are sitting up to take notice. Of course, the latest low-cost airline to take to sky has managed to draw eyeballs with more than 37,000 bookings within 24 hours of debut.

The initial response from these legacy carriers to the current round of fare cuts is expected to be in the form of larger number of discounted seats under the advance purchase (Apex) window. This is likely to be followed by special fares which will be at a discount to the regular fare, sources said.

PlaneMad · Post by **PlaneMad** » 21 May 2005, 20:33

These cuts make me wonder if it these airlines were making big bucks all these years when they could have offered lower airfares.
I always thought the exorbitant fares were due to high landing fees.

B744skipper · Post by **B744skipper** » 21 May 2005, 20:54

PlaneMad wrote:These cuts make me wonder if it these airlines were making big bucks all these years when they could have offered lower airfares.

Who said that the airlines still make money with these low fares!

vivek0072 · Post by **vivek0072** » 22 May 2005, 03:51

Not being pesstimistic but we had a seen a similar round a few years back with Jet, Air Sahara, NEPC, Damania & East West airliners. let us see who survives this round.

PlaneMad · Post by **PlaneMad** » 22 May 2005, 10:23

The difference is that, previously all the airlines were managed by individuals who thought running an airline is similiar to running a tea stall.
This time all the start-ups have western CEO with experience in the competitive aviation industry in Europe and America.
I have no doubt that all of these airlines are here to stay this time.

There is no shortage of travellers in India, the trick is to make them use the planes rather than trains.

Advisor · Post by **Advisor** » 22 May 2005, 16:11

vivek0072 wrote:Not being pesstimistic but we had a seen a similar round a few years back with Jet, Air Sahara, NEPC, Damania & East West airliners. let us see who survives this round.

Valid Point, Vivek. But then Jet Airways now has peoples money. Air Sahara too is in the fray, we have to see whether Air Deccan and or Spice Jet last. AirIndia Express is state owned

and leaving the others

are too miniscule even to mention about.

vivek0072 · Post by **vivek0072** » 23 May 2005, 07:48

PlaneMad wrote:
This time all the start-ups have western CEO with experience in the competitive aviation industry in Europe and America.
I have no doubt that all of these airlines are here to stay this time.

There is no shortage of travellers in India, the trick is to make them use the planes rather than trains.

In my opinion having a western CEO will not help, the number of airlines that file for chpt 11 or go bust in the west are more than the airlines that ever existed in India.

But I do agree with you about getting people travel by plane than train , but in India getting rid of the herd mentality and getting people to try something new is difficult. (off topic, when we bought a kinetic Honda in my family, many our neighbours were sceptical and said that it made more sense to buy a second hand proven bajaj scooter then a brand new plastic ladies scooter ).

The airline industry has a long way to go, we need better amenities at the airport, one my friend went to BOM and he asked me how the hell do you fly from there. Anyway hope we have more options in the future with more airlines, and as Advisor said "we have to see whether Air Deccan and or Spice Jet last", I hope they last and provide good service to all.

vivek0072 · Post by **vivek0072** » 23 May 2005, 07:55

More fuel to the competition, AI plans to lease 10 A320.

http://economictimes.indiatimes.com/art ... 118413.cms