Saturday, September 30, 2006

Aviation chiefs: Low fares ‘airline suicide’

Mumbai: “Airline Suicide”. That’s how Warwick Brady, Chief Operating Officer, Air Deccan termed the current irrational pricing of air fares by carriers—an air ticket bought on the day of travel is actually much cheaper than one purchased over four weeks in advance.
Brady was speaking at the third Annual India and Middle East Low Cost Carrier (LCC) Symposium, organised today by the Centre for Asia Pacific Aviation (CAPA).
Significantly, this is truer in the case of full service carriers like Jet Airways, Air Sahara, and Indian, which have—in the face of increasingly losing market share to LCC’s—introduced a slew of schemes that enable passengers to avail a range of discounted tickets.
Blaming the irrational pricing on a lack of market differentiation, Andrew Miller, CEO, CAPA predicted that this would ultimately result in market consolidation and exit.
Meanwhile, CAPA predicts that “By 2010, LCC could be 70 per cent of the domestic market shares.”
29/09/06 Mumbai Newsline
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