Mumbai: Domestic airlines, including IndiGo and SpiceJet, launched a second round of discounts with 30-day advance purchase fares to boost occupancy in March-April, lean months of air travel. While the discounted fares will help in pushing up the load factors, experts fear these could impact profits.
SpiceJet, however, said the sale would 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 increases losses,'' the airline said.
Sources said a weak cash flow situation may have prompted SpiceJet to launch the sale. The airline announced the sale on Friday and was joined by IndiGo, Jet Airways and GoAir. Air India has not reacted yet.
"All customers can get a 30 per cent discount on the already discounted 30-day advance purchase base fare and fuel surcharge for SpiceJet domestic flights for travel till April 15,'' SpiceJet said. The sale is valid till Sunday midnight.
01/02/14 Business Standard
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SpiceJet, however, said the sale would 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 increases losses,'' the airline said.
Sources said a weak cash flow situation may have prompted SpiceJet to launch the sale. The airline announced the sale on Friday and was joined by IndiGo, Jet Airways and GoAir. Air India has not reacted yet.
"All customers can get a 30 per cent discount on the already discounted 30-day advance purchase base fare and fuel surcharge for SpiceJet domestic flights for travel till April 15,'' SpiceJet said. The sale is valid till Sunday midnight.
01/02/14 Business Standard
