loss hit Indian carriers could finally see the silver lining with an estimated 20 per cent jump in air pasenger traffic in the coming months even as they grapple with a spate of issues including FAA downgrade, increased seat inventories and face declining marketshare with impending entry of Tatas-Air Asia, TataSIA and Jet-Etihad.
"The latest airfare war would result in increasing cash flow to the loss struck airlines and help mobilise as much as 20 per cent higher passenger traffic in the coming months," said Subash Goyal, President IATO and Chairman of Civil Aviation Committee, FICCI told The Pioneer.
The flash sales augurs well for the sector that is grappling with large seat inventories even as the the last time the airfare war hotted up was in 2008 but was not sustainable for long as oil prices were ruling high at over USD 138 per barrel. Spicejet too had put up distress sale of 1 million seats last year. CAPA sources say that the move by sector comes at an opportune time when te industry was reeling under a massive accululated losses to the tune of USD 8.6 billion by end of March 2013. "The move is also likely to bring a positive signals for the sector which is fearing loss of the marketshare with the new airlines in the pipeline," Goyal added,
The lCC sector, in particular, has been jittery with Air Asia readying to enter the lCC fray even as the TATA-SIA venture and Jet Etihad are readying their strategy to enter as FSC. In fact, operators like Thomas Cook say that already a 50 per cent surge in bookings have emerged following the recent fare cuts of alomost upto 75 per cent by Indigo, Spicejet, Jet, Go Air and Air India on the domestic sectors or the domestic legs of international sectors. Upsurge has been largely reported on the Mumbai, Delhi,Bngalore routes which continue to be the top selling routes while in fact, operators like Thomas Cook say that already a 50 per cent surge in bookings have emerged following the recent fare cuts of alomost upto 75 per cent by Indigo, Spicejet, Jet, Go Air and Air India on the domestic sectors or the domestic legs of international sectors.
Upsurge has been laregly reported on the Mumbai, Delhi,Bngalore routes whic continue to be the top selling routes while sectors like Goa and Srinagar and Chennai too have seena surge for leisure travel. Spicejet, the second largest lCC had accounced on Monday farecuts which had led a fare war wchih was followe by Indigo, Go AIr and JetAirways and Air India. In fact, Jet had announced a higher travel validity of the flash sales from March 27th to September 30th. With this, Spicejet too has extended he validity period to Thrusday instead of the previous closing on Wednesday.