Staring the end of cheap airline fares

New Delhi: Deep-discount offers may soon be a thing of the past. Industry players and analysts feel the Jet-Sahara merger may mark the beginning of the end of cheap fares, with airlines shifting focus to profits.
Consolidation may help existing players to improve profits, but fare-hardening is seen as a forgone conclusion. A Kingfisher official said ‘yields would improve’ which, in other words, means fares would inch up. “Post-merger, some low-fare discounted fares may go, but that would be good for the sector on the whole,” said SpiceJet director Ajay Singh.
Travel agents point out that Air Sahara over the last 12-18 months has been trying to “buy” market share by offering discounted tickets, while at the same time incentivising agents to promote the carrier.
Senior executives of some low-cost carriers confide in private that with Sahara out of the reckoning, there will be less confusion in the market.
11/04/07 Economic Times

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Categories: Air Sahara Apr 2007, General Aviation Apr 2007, Jet Airways Apr 2007