Domestic Flight Offers for Valentine Day

Travel industry witnesses a rise in its demand during festive seasons or special occasions. For instance, the number of air ticket bookings doubled or tripled during Diwali, Dussehra or New Year. To attract fliers, carriers come up with a number of domestic flight offers and discounts. SpiceJet has recently announced its Valentine Day offer. Under this, travellers can book domestic flight tickets for INR 1599 for many domestic destinations. After meeting financial challenges, this is the first offer rolled out by this Sun Group-owned low-cost carrier (LCC).

Current Status of SpiceJet

Now, flights to Goa, Mumbai and Delhi can be booked at discounted prices for travel dates falling between February 15 and April 15. The chief commercial officer of the airline said that the company is looking towards good results with this offer. It has been rolled out to celebrate the confidence bestowed on the carrier by the government, financial institutions and fliers. A few weeks before launching this scheme, the approval of the proposal to transfer of shares owned by Kalanithi Maran and his KAL Airways Private Limited to Ajay Singh was another big change in the management. Ajay Singh was co-founder of the company. It is expected that these revival plans will leave a positive impact on the business of this carrier, by pushing it on the right track.

Launch of New Flights

In addition to this, there is another good news for fliers. Vistara recently announced launch of its operation on two new routes; Hyderabad and Goa. As per reports, flights to Goa and Hyderabad will be commenced from February 20 and March 1, 2015, respectively. Apart from launching these new operations, it will also add capacity on the existing ones. The number of flights operated by Vistara will go up to 164 from 68, after these two new destinations are added in the list. This recently launched airline started its operations on January 9, 2015. The Chief Executive Officer (CEO) of the airline said the company is delighted to announce these expansions and expects to benefit from the great potential that both these cities have to offer. He also mentioned that this step will help the carrier in strengthening its position in the market.

Low-cost Delhi Dhaka Flights with Airbus A320Neos

In the recent past, aviation industry has grown in India by leaps and bounds. It was because between 2004 and 2005, many low-cost carriers (LCCs) entered into the market, in a bid to make air travel available to as many people as possible in the country. Before their foray into this sector, only the full-service airlines operated in the nation. With the coming of LCCs and the trend of low cost flights, the aviation industry in the nation saw an enormous boom. As a result, many important airports across the country were either, modernized or expanded to cater to the needs of both the carriers as well to serve the demand for air service to more people.

Positive Impacts 

The greatest benefit of this change has been for travellers, who now have a greater choice of airlines, flight timings and destinations to choose from. Most LCCs often operate to destinations, where others do not, in order to gain a wider passenger base and generate more profits. This has also led to the development of certain previously underdeveloped regions or cities in India due to increased transport connectivity. Not only are these places seeing industrial development, but also there is a significant increase in the number of tourists travelling there. Its effects are also beginning to be seen on full-service airlines as they too have started offering tickets at relatively lesser prices to compete.

Negative Impacts 

Like most things, low-cost aviation has had negative effects too, along with positive ones. The most obvious of them has been environment-related as the increase in aircraft movement has led to more fuel consumption that has further led to an increase in air pollution. Another potential damage that rising jet fuel consumption could lead to is increase in the prices of air tickets. This can happen for two main reasons: decline in resources and heightened expenditure. Air turbine fuel is made by refining crude oil; the reserves of which are fast declining. As the resources are thin, its prices will increase and that can prompt airlines to increase their booking costs as well. Most carriers spend about 40 per cent of their total revenue on buying fuel for their aircraft, and if they somehow witness losses owing to competition they may again raise their fares.

Remedy and Future

While search for alternative sources for powering aircraft goes on, there is one thing that most LCCs have considered. It is to steadily ask passengers to pay less and at the same time, to reduce pollution, they need to modify their fleet. Major Indian LCCs, including IndiGo and GoAir have started ordering the lesser-polluting Airbus A320Neos.

This particular aircraft is especially good for them as due to its narrow-bodied frame and an all-Economy seating arrangement, it can carry up to 20 passengers more than its predecessors. This will translate into fewer operations, amounting to roughly 15 per cent less fuel consumption. IndiGo and GoAir have placed substantial orders for the A320Neos and once they are delivered, they may be utilized to operate on some routes that have not yet been explored. These carriers continue to expand their reach and Delhi Dhaka flights could be launched by them as these are two important Asian destinations, and people look to travel to and from them, regularly. 

Changes in Jet Konnect Ticket Booking

Jet Airways is one of the leading full-service airlines of India, serving over 70 global and domestic destinations with the help of its low-cost wing Jet Konnect. The airline is going through the process of turn around in order to deal with the competition. Now, people will be able to experience the comfort of full service by making Jet Konnect ticket booking. The goal of the carrier is to operate under a single brand name, and soon services of its subsidiary will also be provided with the name Jet Airways. As per industry experts, this step will allow travellers to identify the carrier easily and remove all sorts of confusion.

It was observed that fliers were confused regarding the name of the service provider, and many did not know that both operators work under the same company. The announcement regarding market re-positioning was made by the airline back in August 2014. It immediately started aligning and streamlining its operations in the country under a single brand in order to provide high-quality services consistently. Now, complimentary meals are included in the in-flight amenities provided on all domestic routes including Delhi to Mumbai, Jaipur to Varanasi and Aizawl Imphal flights. As per reports, 11 aircraft were serving under the brand name Jet Konnect that will be changed in the coming months. Names on these models will be repainted for the sake of uniformity. As far as memberships are considered, members of JetPrivilege will be eligible for JPMiles, and will now get benefits as per the structure designed for full-service operations. Industry watchers are of the opinion that the carrier is undergoing these significant changes to deal with the competition that reached to a new level with the entrance of Vistara in the industry.

Vistara – the Tata and Singapore Airlines (SIA) joint venture – recently received the Air Operator Permit (AOP), and opened bookings for Delhi, Mumbai and Ahmedabad routes. It is planning to expand its network in the country, and its target markets are the smaller towns of the country. As per reports, the pricing strategy of this new operator is attractive. It is believed that by introduction of the new Premium Economy Class in the country, it will attract fliers who can pay a bit extra for more comfort. For Jet Konnect Vistara will be nearest competitor which will offer better bargain power to travellers in low cost airlines segment.

New Options to be Added in GoAir Ticket Booking List

The aviation foray of the Wadia Group, GoAir is a leading low-cost carrier (LCC) of India. It has been providing economical services to the country since 2005, and has expanded exponentially. Currently, the GoAir ticket booking list features around 23 destinations of the country, including a number of Tier I and II cities. It operates over 900 flights every week from its hubs at Chhatrapati Shivaji and Indira Gandhi International Airports. The carrier recently received its 20th aircraft and is now planning to commence its global operations. As per one of the clauses of aviation rules in India, carriers have to complete five years of operation and own at least 20 models before initiating international operations.

In addition to this, the carrier is also planning to raise funds through foreign direct investment (FDI), as per reports. Commencing new operations may require a lot of funding, and FDI will help the carrier in meeting new fund demands. It is one of the rare airlines that posted profits throughout the year, even when other operators posted crores of loss. As per reports, it recorded a profit of around INR 100 crores in 2013 and 2014 financial year, and may continue the trend in 2015. Recent changes in the Aviation Turbine Fuel (ATF) will help the airline in adding a few more zeros in profits. The infusion of new fund may add a number of other domestic options as well such as Belgaum to Delhi and Khajuraho Varanasi flights.

The chief executive officer (CEO) of the LCC said that the process of raising money may take some time as it may involve meeting interested parties and going through each proposal. He also added that the airline is in no hurry of funding as it is currently focusing on its international business. It is expected that these new services will be launched in second quarter of the 215, and currently it is considering Gulf destinations or other cities that can be reaches in three hour and 15 minutes. It will deploy around 13 per cent of its capacity on international routes as domestic market is also important for them. Gradually, the LCC may add flights after observing its performance and demand on these routes.

Cheap Flights to Thiruvananthapuram and Other Domestic Destinations

The Indian aviation industry underwent several changes in the past few decades that made it a better and efficient market place. A number of global operators are interested in setting up their base in the country and recently Malaysia-based AirAsia entered in the market, followed by the Tata – Singapore Airlines joint venture – Vistara. The former one initially targeted the niche market and launched operations to and from South Indian cities like flights to Thiruvananthapuram, Chennai and Bangalore. However, now it is planning to expand the business and may soon be adding new cities in its booking list. On the other hand, Vistara will start operations in the New Year with flights to Delhi, Mumbai and Ahmedabad.

Other cities of the country will soon be added in the booking list as soon as the carrier receives the due delivery of 18 more aircraft. It purchased 20 Airbus models on lease, including Neos and only two of them have been delivered so far. In addition, this full-service airline may also initiate global operations in the coming months as the aviation authorities of the country are planning to remove the 5/20 article. As per the 5/20 rule, carriers have to operate for at least five years and own 20 aircraft in order to commence international business. If the government removes this barrier, the Tata-owned operator may launch Bangkok, Malaysia, Singapore and Paro Delhi flights, as these destinations are among favourite tourist spots around the country.

As far as domestic plans are considered, the carrier is planning to operate 87 flights, connecting Goa, Delhi, Chandigarh, Mumbai, Srinagar, Ahmedabad, Patna and Hyderabad. As per reports, the first maiden flight between Delhi and Mumbai will be launched on 9th of January, 2015. Industry watchers believe that this joint venture will bring some significant changes in the market, the first among them is introduction of the Premium Economy Class. In addition to this, the experience of the Tata Group in corporate world along with expertise of Singapore Airlines in the aviation industry may help this airline in quickly grasping the market share. As per reports, it has innovative pricing strategies that offer unique flying experience at economical costs.