Thursday, September 10, 2009

Lost opportunity - Air India

In times of crisis, when there is an absolute cut in supply of air travel options (Jet Airways pilots strike), Air India has still not managed to rise up to the occasion. People who argue saying that government presence in service provisions such as air travel is important for a rainy day (such as now) do not realise that the government run airline company did not do what it was meant to, i.e., take more passengers.

HIGH FLIERS
Peak time ticket rates from Delhi [ Images ] to Bangalore
Airline Price earlier Price now
Kingfisher 6,000 12,500
Go Air 3,000 4,500
Air India 6,000 6,000
SpiceJet 3,179 NA
IndiGo 3,179 NA
Amount in Rs                NA: Tickets not available
Source:http://business.rediff.com/report/2009/sep/10/jet-cancels-198-flights-deadlock-continues.htm

Vijay Mallya's Kingfisher saw a 100 per cent load factor on Wednesday, after doubling its ticket price for business class travel. Go Air and all other low-cost airlines have also been running to its capacity. Without having raised the price, Air India has managed to see only a modest 14 per cent increase from 60 per cent passenger load on a normal day. Time for renaissance in the company?

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