Air India ups ante with promotional fares

New Delhi: Having received the government's backing to tide over its financial mess, Air India has stepped up efforts to enhance its market share and revenue by aggressive strategies.
The national carrier , which is currently running multiple promotional fares, has introduced new advance purchase schemes (apex fares) to woo more passengers. The seven days and 14 days apex fares in the Delhi- Mumbai (one way) sector are roughly cheaper by over Rs 600 and Rs 2,300, respectively.
On December 12, Air India's Delhi to Mumbai fare in the 6 to 9 am time slot is only Rs 100 more than low- cost airlines SpiceJet and Indigo. However, its fares are cheaper than GoAir and Jet Airways Konnect by over Rs 700 and Rs 2,000, respectively. Both these airlines are low-cost while AI is full- service. This means that a resurgent AI is taking on its rivals, including low cost airlines that have lower operating cost.
"The earlier you book, the cheaper you get. Fares are dynamic and it varies from sector to sector. But our fares are attractive," said an AI official.
Lately, the airline has accorded high priority to revenue enhancement and timely performance rather than concentrating only on cost-cutting measures. Marketing has been given a leg up to enhance the seat load factor to 75 per cent from below 70 per cent, now.
30/11/11 Lalatendu Mishra/Business Today

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Categories: Air India Dec 2011