Price war in Airlines Industry in India.
Vivekanand Tripathi
(Editor DERIK TIMES)
Indian Airline Industry in today’s era is rapidly changing. All the companies are now announcing their offers that are comparatively available at a cheaper rate than before. Customers are the one who will get maximum benefit by this scenario, because every company wants to compete with each other and they also want profit maximization.
Spice-Jet started fare cut with 30% discounts and now it’s offering 50% discounts. Indigo India’s largest passenger carrier) slashed its fares by around 50% for 30-day and 60-day advance purchases on its website.
Go-Air and Jet Airways are also following the same, Jet Airways offering 1999 ticket to travel period between (October 7, 2014 to January 15, 2015)
WHY?. Air Asia (shares- AirAsia-49%, Tata and Sons-30% and Telestra Tradeplace 21%)Entry of a big competitor named Air Asia is a big reason of this kind of Price war in the country. Air Asia is a well-known airline company globally and it’s providing a very affordable air travel in India.
Present scenario. Airline sector is not in a very good condition at present. Companies are cutting down their ticket prices and offering more discounts to compete in the market for a long time, they’re forced to do so because of a new entrant Air Asia in the market. Air Asia is a company with a tag line “Now Everyone Can Fly”, it provides very affordable tickets. The Indian Airline Industry is reforming after the entry of Air Asia.
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