Sunday, January 20, 2013

Flying high


This is lean season and airlines are lowering fares. In a high airfare regime, demand for air travel is shrinking, causing concern among airlines.
So when SpiceJet last week made a dramatic offer, everyone stood up and took notice.
SpiceJet’s one million (10 lakh) seat cheap fare offer was something people made a dash for. In 72 hours, seven lakh seats were sold at Rs. 2,013 a ticket (all inclusive) across the network of the low-cost airline. Travel under the scheme is valid from February to April, a time when airlines fly with over 30 per cent empty seats.
The current travel trend is negative. November and December 2012, considered peak months, witnessed a growth regression of 7.28 per cent and 4 per cent respectively, compared with November and December 2011. Rising airfares had an impact on growth by 3.4 per cent in the January-December 2012 period, compared with the same period in the previous year. The January-April period is lean as families and travellers avoid travel.
19/01/13 Lalatendu Mishra/The Hindu
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