run carrier Air India is “waiting and watching” before it decides to get into the fare war initiated by low-cost carriers including SpiceJet, IndiGo and legacy carrier Jet Airways.
Asked whether these latest low fares would lead to a fare war and predatory pricing that could hit the bottomlines of the already troubled airlines, Civil Aviation Minister Ajit Singh said, “We don’t regulate air fares. We are setting up a cell to monitor the fares but monitoring is different from regulating the fares.”
“We are watching the situation. Air India shall respond to this depending on how the situation develops,” Air India Chairman and Managing Director Rohit Nandan said here on Wednesday.
Market sources claim that Air India can join the fray but it has to first consolidate its position as its finances are weak as of now.
However, with major carriers slashing airfares following Jet Airways offering 20 lakh seats at `2,250 for travel till the year-end, and other airlines following suit, Air India could also look at offering a sizeable number of seats at a discounted rate to attract more passengers.
With aviation regulator keeping a close watch on predatory pricing, it is unlikely that the airlines in India would breach the lowest fare bucket.
Commenting on the Jet Airway’s move, industry sources said,“This move could be a smokescreen to divert attention from the Jet-Etihad deal that reportedly has run into some problems.”
“At the same time the decision to slash airfares could also be intended to shore up share prices that have dipped somewhat in the past few days,” sources felt.
“Through this measure,” they saidm “Jet was seeking to attract passengers away from its rivals and raise an immediate cash buffer of about `400 crore.”
COMPENSATION FOR DREAMLINERS
Speaking about Air India being compensated for the defective ion-lithium batteries that led to the grounding of Boeing 787 Dreamliners, Ajit Singh said, “There will be some compensation. ...Let us wait a while.”
Regarding the compensation, Nandan said, “We have an understanding that we will be compensated. We are already operating the Boeing 777s on these routes earlier by operated by Dreamliners.” http://newindianexpress.com/business/news/article1472655.ece
Asked whether these latest low fares would lead to a fare war and predatory pricing that could hit the bottomlines of the already troubled airlines, Civil Aviation Minister Ajit Singh said, “We don’t regulate air fares. We are setting up a cell to monitor the fares but monitoring is different from regulating the fares.”
“We are watching the situation. Air India shall respond to this depending on how the situation develops,” Air India Chairman and Managing Director Rohit Nandan said here on Wednesday.
Market sources claim that Air India can join the fray but it has to first consolidate its position as its finances are weak as of now.
However, with major carriers slashing airfares following Jet Airways offering 20 lakh seats at `2,250 for travel till the year-end, and other airlines following suit, Air India could also look at offering a sizeable number of seats at a discounted rate to attract more passengers.
With aviation regulator keeping a close watch on predatory pricing, it is unlikely that the airlines in India would breach the lowest fare bucket.
Commenting on the Jet Airway’s move, industry sources said,“This move could be a smokescreen to divert attention from the Jet-Etihad deal that reportedly has run into some problems.”
“At the same time the decision to slash airfares could also be intended to shore up share prices that have dipped somewhat in the past few days,” sources felt.
“Through this measure,” they saidm “Jet was seeking to attract passengers away from its rivals and raise an immediate cash buffer of about `400 crore.”
COMPENSATION FOR DREAMLINERS
Speaking about Air India being compensated for the defective ion-lithium batteries that led to the grounding of Boeing 787 Dreamliners, Ajit Singh said, “There will be some compensation. ...Let us wait a while.”
Regarding the compensation, Nandan said, “We have an understanding that we will be compensated. We are already operating the Boeing 777s on these routes earlier by operated by Dreamliners.” http://newindianexpress.com/business/news/article1472655.ece
No comments:
Post a Comment