Air India ups ante with promotional fares

Having received the government's backing to tide over itsfinancial mess, Air India has stepped up efforts to enhance its market shareand revenue by aggressive strategies.

The national carrier , which is currently running multiplepromotional fares, has introduced new advance purchase schemes (apex fares) towoo more passengers. The seven days and 14 days apex fares in the Delhi- Mumbai(one way) sector are roughly cheaper by over Rs 600 and Rs 2,300, respectively.

On December 12, Air India's Delhi to Mumbai fare in the 6 to9 am time slot is only Rs 100 more than low- cost airlines SpiceJet and Indigo.However, its fares are cheaper than GoAir and Jet Airways Konnect by over Rs700 and Rs 2,000, respectively. Both these airlines are low-cost while AI isfull- service. This means that a resurgent AI is taking on its rivals,including low cost airlines that have lower operating cost.

"The earlier you book, the cheaper you get. Fares aredynamic and it varies from sector to sector. But our fares are attractive,"said an AI official.

Lately, the airline has accorded high priority to revenueenhancement and timely performance rather than concentrating only on cost-cuttingmeasures. Marketing has been given a leg up to enhance the seat load factor to75 per cent from below 70 per cent, now.

Air India officials said their promotional schemes such asSuper Saver coupons (four and eight coupon schemes), Silver and Platinum passes(unlimited all inclusive 15 days travel for Rs 35,000 economy and Rs 75,000business class) are doing well.

Many passengers are also taking advantage of the upgradescheme to fly business class at cheaper prices. AI is also offering discountsin Web booking to reduce distribution cost.

The new management under Rohit Nandan has been pro-active todeal with the crisis with a positive attitude and it has started reflecting onthe employees' morale, though they have been getting salaries late and threemonths of PLI is yet to be paid.

Courtesy: Mail Today