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Friday, 20 June 2014

Air India quietly taking on budget carriers, offers cheap tickets on busy routes

Mumbai: Even as India's four budget carriers wage fare wars to gain shares in the market, Air India has been quietly undercutting them with lowest ticket prices on busy routes.
However, India's national carrier is selling cheap tickets even closer to the travel date, indicating it is desperately trying to fill empty flights. For instance, the airline is selling flights to Bangalore-Goa on June 24 as low as 2,059 while AirAsia is selling it at 4,840. The route became popular after AirAsia India started its maiden flight on the Bangalore-Goa route last week.
On Ahmedabad-Mumbai sector, Air India is offering fares as low as 3,559 early next week while the low fare carriers are offering tickets between 5,300 and 5,900.

The obvious reason is unsold inventory, said Sharat Dhall, president, Yatra.com. Airlines typically sell cheaper seats on later travel dates and jack up fares closer to the travel dates as more of their seats get sold.
Read news in full 18/06/14 Anirban Chowdhury/Economic Times
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