Wednesday, August 02, 2006

Airlines to beat lean season via discount route

Mumbai: With an intense battle on for marketshare domestic airlines are competing among themselves to extend special and concession offers to passengers. Majority of domestic airlines have joined the bandwagon of offering seats at throw away prices, due to lean season.
Full service airline Jet Airways kickstarted the second round of monsoon special fares by offering 10,000 seats under its "superfares" scheme, subsidising over 40 per cent against current fares.
Low cost airlines too joined in with Air Deccan, GoAir, SpiceJet and full service airline Kingfisher Airlines also having joined the league. However, industry analysts say concessional pricing is not sustainable for airlines as their yields are under tremendous pressure.
02/08/06 P R Sanjai/Business Standard
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