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Tuesday, 16 June 2015

Guess what? Budget airlines only slightly lower than full service ones, reveals DGCA study

New Delhi: A detailed fare analysis by the DGCA for domestic airlines in the calendar year 2014 has thrown up some interesting insights into how the Indian airline industry functions. If we set aside DGCA's assertion that all airlines were following the rule book and not really earning massive profits by selling many tickets at very high prices, it is clear that the myth of low fare versus full service airlines is just that - a myth.


Almost all airlines have been charging similar average fares from passengers all of 2014. But while some call themselves low fare airlines and and offer a single class configuration aircraft, where food has to be bought by paying extra, others call themselves full service and offer complimentary meals.
Consider the Mumbai-Delhi sector, which is the busiest domestic route. According to the DGCA data, not once in any quarter of last calendar year did the average fare on any airline breach the Rs 9000 mark. IndiGo, GoAir, JetLite and SpiceJet charged an average fare of Rs 7700-8200 whereas full service airlines Air India and Jet Airways averaged Rs 8600-8700 in Q1.
Read news in full 05/06/15 Sindhu Bhattacharya/First Post

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