In recent months, the term – price war – in Indian aviation has been grabbing the headline space more often than not with airlines making a beeline to woo customers with their various domestic flight offers. As many as seven, including the recent one from SpiceJet, has been the story so far in 2014. This calls for some scrutiny as to why airlines are so desperately selling their tickets at discounted prices, at a time, when all they can show in their balance sheets is heavy losses. Is the discount strategy a way to cover up the losses or is it the fear of losing market share to new possible entrants into the already packed sector?
Expert View
Industry experts, with their groundwork done, are of the opinion that both the above-mentioned factors have led to this situation. The losses from the previous year are haunting carriers, and they want to get rid of it as soon as possible; however, the fact is not all can say that they have been successful in their endeavour, even after so many discount offers. The only positive that has come out from all these sales deals is the reaction from the general public, which can be safely said to be overwhelming, especially for SpiceJet offers.
The other issue that has been hanging like a sword on the necks of domestic carriers is the likely foray of international carriers in India, the most threatening among them being Air Asia. Such is the scenario that domestic airlines have filed a petition with the Director General of Civil Aviation (DGCA), through their federation, to not allow Air Asia to start its operations in the country.
It is to be been as what is the future of Indian aviation in coming months and how many times more, can we expect SpiceJet discount deals in 2014.
Expert View
Industry experts, with their groundwork done, are of the opinion that both the above-mentioned factors have led to this situation. The losses from the previous year are haunting carriers, and they want to get rid of it as soon as possible; however, the fact is not all can say that they have been successful in their endeavour, even after so many discount offers. The only positive that has come out from all these sales deals is the reaction from the general public, which can be safely said to be overwhelming, especially for SpiceJet offers.
The other issue that has been hanging like a sword on the necks of domestic carriers is the likely foray of international carriers in India, the most threatening among them being Air Asia. Such is the scenario that domestic airlines have filed a petition with the Director General of Civil Aviation (DGCA), through their federation, to not allow Air Asia to start its operations in the country.
It is to be been as what is the future of Indian aviation in coming months and how many times more, can we expect SpiceJet discount deals in 2014.
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