AI reduces fare on Mumbai-NY flight

Air India has been forced to drop its fares substantially for all classes of its non-stop Mumbai-New York flight, within first week of launching the service (first by an Indian carrier).
In a price-sensitive market, lower fares offered by airlines like Delta, and Jet (while Delta offers a non-stop service, Jet offers the service with a stopover in Europe) have proved to be a bigger pull than the ‘unprecedented' comfort promised by AI on its mint fresh long-range jets.
AI has reduced economy class fares by Rs 4,000 to Rs 50,700. But the business and first class tickets have taken the biggest hits in the range of Rs 66,000 to Rs 90,000. A business class ticket now costs Rs 1.59 lakh, instead of Rs 2.25 lakh. And flying first class will now cost Rs 3.6 lakh, instead of Rs 4.5 lakh.
The first flight of the 238-seater Boeing 777 LR on August 1 took off from Mumbai with just 80 passengers. Over the week, this number may have more than doubled but AI has realised that price - and not pampering - is more important to lure customers.
08/08/07 Saurabh Sinha/Times of India

To Read the News in full at Source, Click the Headline

Categories: Air India Aug 2007, Foreign Aug 2007