Thursday, December 28, 2006

Low-cost carriers begin festive season hunt

Mumbai: India’s low-cost carriers may not be at their peak financially, but that is not stopping them from firing on all cylinders to woo customers during the festive season that has only just begun. Setting off a ‘catch-as-catch-can’, Wadia group-promoted GoAir and Air Deccan are offering tickets at throwaway prices.
GoAir has announced the launch of Go@99, offering customers tickets priced just Rs 99 for 13 Indian destinations from till January 1.
Air Deccan had recently started a scheme of two lakh tickets at Rs 2 each for flyers between February and March.
According to Surbhi Chawla, a research analsyst at Angel Broking, “These kinds of tickets are offered on those flight which are mostly empty and tickets that are barely sold, as per the yield management system.”
The cost of these tickets add up to more than Rs 1,000 when fuel surcharge, airport and congestion charges are added, which means that these offers will help the airlines to recover operating costs, she adds.
28/12/06 Benny Antony/Economic Times