August 8, 2016.
Air India has been working hard on ways to revive its fortunes, reduce expenses and expand services. Air India is estimated to have posted an operating profit of Rs 80 million in 2015-16, mainly helped by steep fall in jet fuel price.
Air India chief Ashwani Lohani, who is about to complete one year as CMD Air India, has asked AI employees to stop presenting him with bouquets and do away with “petty courtesies” while ensuring that minimal number of officials are present to see him off at airports.
Air India has already barred its officials from using luxury cabs while travelling within the country.
The Civil Aviation Minister Ashok Gajapathy Raju said during Question Hour in Rajya Sabha, “After many years, this is the first year that Air India has not made an operating loss. It is going in the right direction and I think if this effort continues, it will be an airline we will all be proud of.”
Observing that Air India, despite its massive loans, is trying to stay afloat, he said, “Its financial status is fairly precarious. It has got a lot of loan. Historically it has come to it and they are doing their best to keep it afloat and to see that it performs second to none. We of course would like Air India to survive. So we are trying that on the government side and we are supporting it.”
Against such an optimistic backdrop, National passenger carrier Air India is now in the lead of the ongoing Air-fare war in India. It has announced a populist scheme : “Monsoon Sale”.
Sacrifice luxury, observe austerity, lure customers by offering discounts, & thus fill vacant seats. Air India now seems to have learnt its lessons.
Air India has announced discounts on select sectors in the economy class for travel on both domestic as well as on the international sectors. Air India cited that the offer can be availed on more than 250 domestic sectors for travel between August 22 and September 30, both days inclusive. It said in a statement:
“Under this offer, available from 9th to 15th August 2016, Air India flyers can book tickets at amazingly low fares starting at INR 1,199/- (all-inclusive one-way fare) and INR 15,999/- (all inclusive) on its select domestic and International sector respectively. On the International network, the sale is valid on select return flights (ex India only) for a travel period from September 15th to December 15th 2016 (both days inclusive) for commencement of journey.” “
Other airlines in India are also forced to follow Air India. Various other airlines have also announced discounted fares to attract flyers during the lean travel season. The periods between January-March and July-September are considered to be lean travel seasons. Airlines have to offer these kinds of special fares not just to increase load factors, but also to stimulate demand, during the lean seasons.
Will these promotions be a hit with the fliers ?
Budget passenger carrier SpiceJet too came out with discounted air fares under its “Great Independence Day sale” scheme.
SpiceJet said under this scheme, it will offer one-way fares as low as Rs 399 base fare (surcharge and taxes extra as applicable) for travel to select destinations on its domestic network and the international fares start at Rs 2,999 base fare (surcharge and taxes extra as applicable) for non-stop direct flights.
According to SpiceJet, the three-day sale will be open till midnight August 11 and the travel period covered is from August 18 to September 30. The airline added that it is also offering attractive fares on various direct flights across the network. As a caution, SpiceJet said, “There is limited inventory under the offer, and seats will be available on first-come, first-served basis. Sales fares are not applicable on group bookings and cannot be combined with any other offer. The offer is applicable only on non-stop flights and fares vary from sector to sector depending on the travel distance and flight schedules.”
Another LCC IndiGo announced its discounted air fares offer starting at Rs 806 for travel on its domestic network. It should be noted that IndiGo had earlier said that its average fare costs INR
The timing of such announcements coincides with a long rakhi weekend coming up. India’s Independence Day is just around the corner. It is a great time for a quick getaway for Indian air travelers.