Air India may join 'low fare' price war to attract travellers

Air India

After the SpiceJet move to slash fares last month, the aviation regulator had urged other airlines not to follow suit as such a practice could be harmful to their financial

bottomline that was already in trouble.

The industry sources also said the Jet offer of 20 lakh seats at low prices for travel till December 31 may not be bought entirely as people don't plan way into the future.

This had also happened with SpiceJet which could sell only about 40 per cent of the ten lakh seats it had offered, they claimed and added that the current fare war could last only till February 24 as long as the Jet offer lasts.

Industry sources said high airfares throughout last year, caused primarily by the grounding of Kingfisher Airlines, had led a substantial chunk of passengers to opt out of air travel.

This had led to negative growth in traffic for the first time since 2009. But the recent low fare offers by the airlines could lead to attracting these air travellers back to flying.

The sources said the dip in fares would also help airlines to fill in the extra capacity they have introduced by getting new planes.

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