05:02
Unknown
Air India has stiffed up
competitors in the domestic aircraft sector by offering airfares priced at Rs
100 (apart from taxes), in a five-day sale, evidently to enjoy "Air India
Day" as a mark of its merging with the erstwhile India Airlines in 2007.
However, if history indicates
anything, such price conflicts among cheap air tickets may cause
excellent deals for air fliers, but could only mean trouble for the airlines.
Aggressive costs have been the
standard ever since low-budget airlines such as SpiceJet and IndiGo came into
the picture with their 'affordable' fares. While the stand up war is extremely
warmed among the four providers, namely IndiGo, Jet Air passage, JetLite, and
SpiceJet, Air India's move hints at frustration to create sure it is still in
the reckoning with brochures. These airlines are ready to compromise profits
for market stocks, and the numbers indicate accordingly.
However, even as these successes
come from competitive costs, SpiceJet documented its fourth straight every
quarter reduction with a loss of Rs 124 crore in April-June. In 2013-14, Air
India revealed failures of Rs 5,000 crore, mostly because of the weak rupee
that had overpriced fuel costs and other expenses. Jet Airways had also
revealed its highest yearly loss of Rs 4,129 crore in the same period.
But these airlines continue to
have losses to make sure they do not have to fly vacant aircraft, and Indians
are lapping up the fares.
As train fares rise, many Indians
now prefer to journey by air, with the count of travelers in January-July this
year reaching 376.28 Lakh, as per the Directorate General of Civil Aviation.
While an growing client platform
is excellent information for airlines, firm competitors means that they often
charge brochures below the all inclusive costs suffered. Thus, it can only be
considered that while a Rs100 provide may seem exciting, it could only mean
short-term pleasure, as airlines would once again have to push up prices if they
have to survive.
