Fare war on the Bay of Bengal
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Last week’s announcement of SilkAir launching flights to Kolkata has set the ground for a fare war. Times of India said within hours of the announcement, “AirAsia replied in style, firing a battery of missiles to annihilate rivals”. It said under fire, Thai Airways, Jet Airways, Kingfisher Airlines and Air India Express had dived for cover “but they may soon re-emerge, armed with the latest arsenal to counter the biggest threat since 2005”. That was when Singapore Airlines, Malaysian Airlines and Jetstar Asia had launched a fare blitzkrieg that sent shockwaves through the industry. Singapore Airlines-SilkAir have announced a combined return fare of INR 30,000 for a couple travelling to Singapore against the minimum fare of INR 42,000 prior to the offer. “The promo fare will be applicable to both Singapore Airlines and SilkAir flights. Both are full-service carriers and we are offering the attractive fare so that people get to experience them. There is no intent to destabilise the market,” Singapore Airlines general manager (India) GM Toh was quoted saying. Within hours of the announcement, low-cost carrier AirAsia shot back, offering a flat 20% fare slash on 21 sectors off Bangkok and Kuala Lumpur. AirAsia Regional Manager Suresh Nair had nsisted that the fares had not been announced in retaliation and were part of the carrier’s attempt to get first time fliers on board the airline. “Around 20% of passengers who fly AirAsia out of Kolkata are first-timer travellers. And many among them are those who are travelling to a foreign country on their very first flight.” Travel trade industry sources was quoted saying that Thai Airways, Jet Airways, Kingfisher Airlines and Air India Express might also be forced to revise fares if the impact lasted long.
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