Mumbai: The three-day discount sale launched by domestic airlines has boosted forward bookings of carriers in February and March, which are a lean season for travel. With occupancy less than 20 percent on flights in those months airlines slashed fares, offering tickets at 50 percent discount. SpiceJet was the first airline to drop fares and other airlines followed suit.
The discount offer has brought back passengers with those not planning to take air trips earlier booking tickets. An industry source says occupancy was less than 20 percent on flights thirty days from now, and now these flights are up to 50 percent full.
"There has been an increase in bookings from individuals and families who would see air travel as discretionary spend," he added. Airlines are now hoping to recover the loss by selling higher fare slabs in order to achieve a break even but that may prove to be difficult.
On an average, domestic airlines sell around 40,000-50,000 tickets daily. Domestic airlines operate Boeing 737s and Airbus A320 with capacity of 180-190 seats per aircraft. The operating costs and break even seat factor varies from route to route and from airline to airline.
25/01/14 Aneesh Phadnis/Business Standard
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The discount offer has brought back passengers with those not planning to take air trips earlier booking tickets. An industry source says occupancy was less than 20 percent on flights thirty days from now, and now these flights are up to 50 percent full.
"There has been an increase in bookings from individuals and families who would see air travel as discretionary spend," he added. Airlines are now hoping to recover the loss by selling higher fare slabs in order to achieve a break even but that may prove to be difficult.
On an average, domestic airlines sell around 40,000-50,000 tickets daily. Domestic airlines operate Boeing 737s and Airbus A320 with capacity of 180-190 seats per aircraft. The operating costs and break even seat factor varies from route to route and from airline to airline.
25/01/14 Aneesh Phadnis/Business Standard
