Fare war on international routes as lean season begins

Mumbai: The tussle for cornering a share of international passengers is getting hotter. Jet Airways is offering up to 50 per cent discounted fare to Bangkok, Dubai, Muscat and Singapore to attract loads and lure away passengers from low cost carrier, IndiGo.
February-March are lean seasons for leisure travel. With the closing of Dubai shopping festival, loads on this sector also dip. International sector contributes 55 per cent to Jet’s revenue and in winter, the sector had an average load of 80 percent. Amongst the international airlines, Singapore Airlines has launched lower fares to coincide with the launch of its two additional flights from Mumbai.
Air India which came under criticism for dropping fares last summer, has kept its December fare levels intact. According to airline sources, it is holding on to relatively higher fares expecting improved revenue. “We are offering low fares to stimulate the demand,’’ a Jet Airways source said. The strategy is also to poach passengers from IndiGo and Kingfisher. Jet is also selling discounted one way fare to Dubai and Muscat, to attract labour traffic.
IndiGo went international last September with Rs 9,999 return fares to Dubai, Bangkok, Singapore and Muscat routes. This enabled the airline to make its presence on the international sector.
03/02/12 Aneesh Phadnis/Business Standard

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Categories: Foreign Feb 2012, Indian Aviation- In General Feb 2012