New Delhi: Air India's decision to offer cheaper last minute fares on select routes could be both a boon and a curse for the airline. Some aviation industry experts have said that this move will kill the airline's already dodgy revenue management, and at best may help the national carrier fill every fourth seat which otherwise goes vacant on its domestic flights.
So the boon may be limited to getting more bums on seats. On the flip side, this move could change passenger booking behaviour as well. If one knows that tickets are sure to be available at significant discounts to the average air fare four hours before every flight, why would one want to book a ticket on normal fares at all?
An Air India official said this scheme has been launched to check exorbitant last minute fares, a practice followed by airlines world over. Of course, it seems to be following orders of its master, the ministry of civil aviation, which has often spoken of regulating air fares.
Former MoS Civil Aviation Mahesh Sharma had repeatedly warned private airlines of using Air India to lower fares, by ensuring that the national carrier lowers them first. Is the latest scheme a throwback on Sharma's views?
12/07/16 Sindhu Bhattacharya/First Post
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So the boon may be limited to getting more bums on seats. On the flip side, this move could change passenger booking behaviour as well. If one knows that tickets are sure to be available at significant discounts to the average air fare four hours before every flight, why would one want to book a ticket on normal fares at all?
An Air India official said this scheme has been launched to check exorbitant last minute fares, a practice followed by airlines world over. Of course, it seems to be following orders of its master, the ministry of civil aviation, which has often spoken of regulating air fares.
Former MoS Civil Aviation Mahesh Sharma had repeatedly warned private airlines of using Air India to lower fares, by ensuring that the national carrier lowers them first. Is the latest scheme a throwback on Sharma's views?
12/07/16 Sindhu Bhattacharya/First Post
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