Monday, May 23, 2011

Rivals fight Air India fare sop

New Delhi: Private airlines are mulling new marketing manoeuvres to counter Air India’s strategy to slash fares.
After the 10-day pilots’ strike, the national carrier started offering special fares in 107 sectors across its network, raising seat occupancy to 85 per cent in the economy class and contributing to the stabilisation of fares in the market.
Private players such as Jet, GoAir, Indigo and Kingfisher are unable to slash prices on the back of rising operational and fuel costs. However, they have introduced various offers online to counter Air India.
“We have a tie-up with a travel and tour website. We are offering a free ticket with every ticket bought. The base fare of the free ticket (maximum of Rs 1,000 per passenger) will be refunded (to the customer) by a travel website and the customers will bear the rest of the charges, including fees and surcharges,” said the spokesperson of a low-cost airline who did not wish to be identified.
Others have started advertising campaigns, claiming better service than their competitors.
23/05/11 Karan Choudhury/The Telegraph
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