Will cheap fares work for Air India's domestic business?

Eying a healthy share in domestic market in the upcoming festive season, Air India has launched an advance purchase fare scheme which will give fliers tickets at a price 15 percent lower than available cheapest fares.

“The advance purchase fare-called Jaldi-Jaldi -will be sold for travel commencing 30 days and beyond, and is lower by about 15 percent of the current lowest fares in the market, excluding taxes,” an Air India spokesperson said, adding the fares are available for sale from today.

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As compared to the existing instant purchase fare, the new fares represent a 40 to 50 percent discount on the fare level (excluding taxes), he added. The aviation sector is facing a sluggish single digit growth for past few months due high airfares, owing to increase and fuel surcharge and other taxes.

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“Keeping the market trends in focus, Air India has been offering new fares and schemes to its passengers time to time. This initiative, which is aimed at the leisure and holiday market, has been taken keeping in view the current market scenario,” the Air India official said.

Under this scheme, if passengers purchase tickets 30 days in advance then a ticket on Mumbai-Goa sector would cost him Rs 2,970 only, Mumbai-Delhi Rs 4,931, Delhi-Srinagar Rs 3,516 and Kolkata-Delhi Rs 4,818 and Chennai-Port Blair Rs 4,378, inclusive of taxes.

“Air India believes that the new initiative would spur growth in the air travel market, and promote festive season travel,” the official said.

PTI