Tuesday, May 24, 2011

Air India to focus on innovative regional routes to shore up growth

New Delhi: National carrier Air India Monday said that it will focus on innovative regional routes, including tier-two and tier-three cities, to shore up its domestic market share and revenues.
"We will focusing on these attractive routes in the coming days to gain back our market share by providing the cheapest possible fares on them," a senior official with the flag carriers operational side told IANS.
According to the official, the company expects the regional sector to be the growth driver for the Indian aviation industry as more and more of the tier-two and three cities require connectivity to major metros.
"The increasing demand, coupled with non-existance of any competition, gave us this opportunity," the official said on the eve of the company's new Delhi-Kanpur-Kolkata flight, on which it expects an 85 percent seat occupancy rate.
"This sector is such that there will be a scarcity of seats rather than scarcity of demand."
23/05/11 Economic Times
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