Low airfares may attract ‘hits, not clicks’

Mumbai: Over the past week, SpiceJet, GoAir and Jet Airways have announced special fares in a bid to attract passengers. Will passengers bite?
Aviation analysts say this is nothing more than a marketing ploy to get air travel back into the consideration of travellers to whom it had once again become a luxury.
An analyst with a foreign brokerage said, “The perception that air tickets are now expensive is on the rise. Due to inflation, people were also cutting down on travel expenses. The schemes which are being offered are just enough to help airlines get back into the minds of individual travellers. At the same time, there is a realisation that airlines cannot offer tickets way below costs just to increase their market share.”
Sure enough, air travel was down a massive 38% in September, according to figures released by civil aviation authorities.
Marketing gurus say that while these schemes might help temporarily drive traffic towards the airline’s portals, there is an issue of credibility involved. The attention-grabbing Rs 99 fares do not reveal the surcharges and taxes.
They say that this would only help in complicating a situation where airlines’ trust is on the line, and lead to questions of integrity.
27/10/08 Nirmal John/DNA MONEY

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Categories: Indian Aviation- In General Oct 2008