Mumbai: Domestic airlines including launched a second round of discounts with 30-day advance purchase fares to boost occupancy in March-April which are lean months of air travel. While the discount fares will help in pushing up the load factors indusrty experts fear that the discounting could impact airline profits.
SpiceJet, however, said the sale will not lead to worsening of losses."These highly targeted sales do not increase losses. As long as there is a proper inventory and yield management, they will increase revenue contribution. Flying empty seats around is what increases losses,'' the airline said in a statement.
Industry sources believe that a weak cash flow situation may have prompted SpiceJet to launch the sale. The airline announced a three day sale today and were joined by IndiGo, Jet Airways and GoAir.
31/01/14 Aneesh Phadnis/Business Standard
To Read the News in full at Source, Click the Headline
SpiceJet, however, said the sale will not lead to worsening of losses."These highly targeted sales do not increase losses. As long as there is a proper inventory and yield management, they will increase revenue contribution. Flying empty seats around is what increases losses,'' the airline said in a statement.
Industry sources believe that a weak cash flow situation may have prompted SpiceJet to launch the sale. The airline announced a three day sale today and were joined by IndiGo, Jet Airways and GoAir.
31/01/14 Aneesh Phadnis/Business Standard
