lambuhere1 Member
Joined: 19 Feb 2007 Posts: 232 Location: In the Skies
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Posted: Thu Feb 22, 2007 12:39 pm Post subject: IA takes on low-cost carriers in fare war |
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http://timesofindia.indiatimes.com/Cities/Kolkata/IA_takes_on_low-cost_carriers_in_fare_war/articleshow/1651124.cms
KOLKATA: Indian Airlines is revving up for a dogfight in the skies. With all-time low fares in its arsenal, the national carrier is ready to fire salvos at not just legacy carriers, like Jet Airways and Air Sahara, but low-cost airlines like Air Deccan and SpiceJet as well.
"We have slashed fares on several routes out of Kolkata. The new fares, applicable till September-end, are aimed at winning back passengers lost to competition," IA chief manager (marketing & sales) Nirbhik Rai Narang said.
The airline's new basic fares range from Rs 175 to Rs 625 on all flights to the north-east, except Dibrugarh.
The basic fare to Dibrugarh is Rs 1,525. An additional tax and fuel surcharge component of Rs 975 is applicable on all tickets.
The number of discounted fare seats may range from 15 to 50, depending on the flight's load factor. The full fare on these sectors range from Rs 4,330 to Rs 7,540.
Fares have also been slashed on metro sectors. The lowest fare (tax & surcharge included) to Delhi is Rs 2,990. It will cost a passenger Rs 3,990 to travel to Mumbai, Rs 3,330 to Chennai and Rs 4,000 to Bangalore.
The new fares are part of the airline's dynamic pricing mechanism aimed at optimising passenger load.
With a major capacity augmentation lined up (43-50 new aircraft are to be inducted in the fleet over the next three years), the Indian Airlines top brass have adopted a two-pronged strategy to fill up the seats — expand services in domestic and international sectors and take on competition aggressively to grab market share in existing sectors.
"The move is aimed at increasing load factor from 70% to 90%," Narang said. That will automatically lead to a market share hike.
At present, IA's market share in the east is 24% — next only to Jet Airways at 27%. It offers nearly 1,900 seats out of Kolkata every week.
The basic return fare to Bangkok too, has been slashed. The lowest return fare ranges between Rs 4,500 to Rs 6,000. The tax and fuel surcharge applicable on this sector is Rs 4,000.
The airline has also introduced new super-saver packs for both corporates and individual travellers. The flexible corporate package can now be used by multiple employees of the company.
Meanwhile, LCC IndiGo has announced a promotional offer on 1 lakh tickets at Rs 100, Rs 500 and Rs 1,000 for sale from February 26 to February 28. Taxes and surcharge are extra. |
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