The onset of January, beginning of a traditionally lean season for air travel in India (that lasts till March) and the arrival of a new competitor, Vistara, has once again led to a price war in the Indian skies with Air India and Jet Airways deciding to slash airfares.
Air India rolled out hefty discounts on short-term advance bookings on Monday, three days after rival full-service carrier Vistara, a joint venture between Tata Sons and Singapore Airlines, commenced operations. The Naresh Goyal-led Jet Airways will follow suit by slashing fares beginning today.
The January-March quarter is considered the weakest season in the commercial aviation sector, as it falls between the festive season that begins in September-October and summer vacations that begin in April-May. Airlines typically roll out discounts to attract passengers in this period, but the quantum of discounts may be higher this year as carriers will be eager to retain market share in wake of competition from Vistara. This may lead to an adverse impact on the already stretched balance sheets of some airline companies, though a steep decline in jet fuel prices over the last three months will provide some cushion.
The seven-day sale offered by Air India, valid for travel between January 16 and April 30, has tickets priced at discounts varying from 15% to 50%, depending on the dates of travel and the sector flown. Fares on Air India’s flights in the Mumbai-Delhi sector, where Vistara has launched operations, appeared to have been slashed the most.
14/01/15 Financial Express
To Read the News in full at Source, Click the Headline
Air India rolled out hefty discounts on short-term advance bookings on Monday, three days after rival full-service carrier Vistara, a joint venture between Tata Sons and Singapore Airlines, commenced operations. The Naresh Goyal-led Jet Airways will follow suit by slashing fares beginning today.
The January-March quarter is considered the weakest season in the commercial aviation sector, as it falls between the festive season that begins in September-October and summer vacations that begin in April-May. Airlines typically roll out discounts to attract passengers in this period, but the quantum of discounts may be higher this year as carriers will be eager to retain market share in wake of competition from Vistara. This may lead to an adverse impact on the already stretched balance sheets of some airline companies, though a steep decline in jet fuel prices over the last three months will provide some cushion.
The seven-day sale offered by Air India, valid for travel between January 16 and April 30, has tickets priced at discounts varying from 15% to 50%, depending on the dates of travel and the sector flown. Fares on Air India’s flights in the Mumbai-Delhi sector, where Vistara has launched operations, appeared to have been slashed the most.
14/01/15 Financial Express
