After going through a tough year with low demand amid excess capacity, airlines have of late announced bumper sale one after the other, which was unheard of in past two years.
At the beginning of the year, SpiceJet surprised the industry by announcing fares at Rs 2,013 for travel between March and April followed by today's mega offer put up by Jet Airways with fares ranging from Rs 2250 to Rs 3300 on 57 routes .(Full report)
Indigo too has put up an around 50 percent discount on travel portals on select routes.
Of the 1.6 crore seats that Jet Air has on offer annually, hardly 12 percent of it will be available at discounted rates. By recording around 75 percent load factors in past few months, the airline has already achieved breakeven level in most sectors. Anything above this, can be considered incremental profit, says an analyst.
It is a very good marketing gimmick adopted by the airline. On any other day, if one books a ticket on Mumbai-Goa sector a month in advance, he would anyways get a seat at this price. The offer comes with many riders including levy of some charge, if in case there is any last minute cancellation.
19/02/13 Moneycontrol.com
