Sunday, September 17, 2006

Budget airlines not flying high

Mumbai: Airlines have been giving away tickets at ridiculously low prices to fight competition. In July Indian aviation industry created history when 3.1 million seats were made available to the market. However, only 2.5 million passengers traveled on those seats. And out of this about 70 per cent travelled on discounted fares. Result, account books of all airlines are in deep red.
Domestic carriers have always grappled with expensive Aviation Turbine Fuel (ATF) and other operational costs. But the compulsion to offer heavy discounts to stay in the reckoning is beginning to bleed them dry.
In July again, 70 per cent of Jet, 75 per cent of Kingfisher, Indian and Sahara and 80 per cent of Deccan, Spice, Go and Paramount passengers availed of discounted fares. While the passenger load stood at – 66 for Jet, 63 for Kingfisher, 65 for Sahara, 61 for Indian, 74 for Deccan, 78 for Spice, 70 for Go and 44 for Paramount.
17/09/06 Manish Pant/CNN-IBN