Monday, July 18, 2016

After Air Fare War, Vistara triggers a war of words

New Delhi: After a fierce air fare war, Vistara chief strategy officer Sanjiv Kapoor on Monday triggered a war of words among the airliners especially the nimble-footed private carriers which are gaining grounds every month by grabbing the market share of full-service airlines by predatory pricing.

War of words is not uncommon between the senior airlines in the aviation space and the new airlines. This time around, a tweet by Vistara’s Chief Strategy Officer and Chief Commercial Officer sparked another debate.

"Unbelievable all-in fares day before flight! Simply crazy low fares on offer, unsustainable," Kapoor tweeted listing all the competitive fares of rival airliners.

When Bloomberg TV India spoke to leading low-cost carriers on the subject, the industry players countered Kapoor’s comment by accusing Vistara of coming up with predatory pricing.

Go Air, IndiGo, Air India and Vistara have all priced their Delhi-Bombay tickets with a difference of around few hundred rupees in an around the Rs 3,000 range.

A rival airline official said full-service carriers like Air India, Vistara and Jet Airways should be charging 80 per cent more than the low-cost carriers.
18/07/16 Veena Mani/Business Broadcast News
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