Thursday, August 14, 2014

Govt asks Air India to offer unsold biz class seats at 50% discount

New Delhi: Close on the heels of Jet-Etihad offering 20-50% discount for both domestic and international flights, the government has told Air India (AI) to offer unsold business and first class seats at 50% discount eight hours before departure to garner additional revenue. This is part of the innovative marketing schemes suggested to draw more passengers towards the flag carrier as competition grows with new entrants like Tata-SIA's 'Vistara' and AirAsia.
Just for comparison, the spot fare for a business class one way Delhi-New York ticket on AI is for Rs 2.2 lakh while for Jet it's Rs 2 lakh.
Civil aviation minister P Ashok Gajapathi Raju has given the AI management a three-year period to turn around the loss-making airline. The minister has cracked the whip in a 26-point guideline for improving efficiency and passenger services.
“Keeping in view the need to improve the performance and profitability of Air India, the following broad guidelines are hereby issued, which should be scrupulously followed by the management with a view to bring about the turnaround, into an era of profitability and enhanced performance with the next three years,” the aviation ministry has said in its directive to AI.
15/08/14 Roudra Bhattacharya/Financial Express
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