Markets: Eerie calm

Markets: Eerie calm

it is not clear when market sentiment can change; as in the past, it can be quite sudden.
At a turn and yet not

At a turn and yet not

RBI could be tempted to cut policy rate to support growth at its bi-monthly review.

Now, Air India joins fare war; experts say airlines preparing for Tony Fernandes' Air Asia entry into market

Feb 26 2014, 21:25 IST
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On Monday, SpiceJet triggered a third round of fare war in the last one month, lowering fares by up to 75 pct. (AP) On Monday, SpiceJet triggered a third round of fare war in the last one month, lowering fares by up to 75 pct. (AP)
SummaryDiscount offered by Air India is however applicable only on select domestic routes.

sure to strike a chord with the leisure traveler,” said Sharat Dhall, President of Yatra.com.

“Our website has witnessed a three times growth in visitors and we sold over 60,000 tickets on Tuesday alone. Delhi, Mumbai and Bangalore combinations continue to be the top-selling routes, while leisure sectors like Goa and Srinagar have also seen a big spike,” said Rajesh Magow, Co-founder & CEO-India, MakeMyTrip.

“These promotions have definitely fueled summer-holiday breaks for larger groups (such as families) since we saw a higher proportion of group-bookings compared to single-passenger bookings. Also, a higher proportion of return bookings indicated planned leisure and business travel,” he added.

Recently, a report by Center for Asia-Pacific Aviation (CAPA) said that Indian carriers lost $1.65 billion on revenue of $ 9.5 billion in FY13, while 40% of the annual loss was generated in fourth quarter (January-March 2013) period itself.

The fourth quarter is generally considered the weakest in the year, according to industry experts, when airlines often struggle to fill up its seats.

“The Indian consumer is evolving and seeing the pattern since last year, they have begun expecting such discounts more often. Typically what we have observed so far since last year is that whenever an airline has dropped fares or offered discounts on advance booking, other carriers have matched their pricing to keep their market share,” added Vikram Malhi, GM, Southeast Asia, Expedia.

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