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Home > News > India News > Article > After fare cuts its air freebies

After fare cuts, it's air freebies

Updated on: 22 January,2009 09:25 AM IST  | 
Surender Sharma |

While Air India flies empty, private players are wooing flyers with schemes

After fare cuts, it's air freebies

While Air India flies empty, private players are wooing flyers with schemes

Even after reduction in airfares, fliers are shying away from the state-owned carrier Air India. According to airline sources, there has not been any significant change in the passenger load of Air India in the past three weeks. Surprisingly, almost fifty per cent of the seats remain vacant.

Besides lowering air surcharge by Rs 400, Air India had slashed airfares up to 82 per cent for domestic fliers in over 20 domestic sectors, but couldn't lure passengers.

According to sources, prior to fare reduction, the airline's passenger load was at around 50 per cent, which remained same. "We were very hopeful. But unfortunately, it failed to translate into business," said a top airline official.

"Economic slowdown has rattled the aviation industry. People don't want to fly," he added.

However, private airlines are doing good business. Jet Airways and Indigo have witnessed 10 per cent increase in passenger inflow. Kingfisher officials though did not quantify the growth, but said the occupancy has increased in the recent past.

According to aviation experts, the improvement in load factor is due to the "schemes" being offered by the private airlines. Besides fare cuts, almost all the private carriers have offered schemes to lure passengers. Jet Airways have offered Business Class seats at cheap rates.

Almost all the airlines have offered lucrative apex schemes which are paying dividend.

"Lucrative schemes offered by private airlines are attracting fliers," said, Pradeep Lulla, president, Travel Agents Federation of India.




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