Fri. Apr 26th, 2024

The price war in the airline industry is still continuing, each one trying to be better than the others, in terms of services and prices.  Air Asia announced the fare of Rs. 990 for Bangalore-Chennai route in the month of June which forced the other airlines to revise their prices.  Spice Jet offered Rs. 2058 for the same route.  Indigo went below the market price and offered Rs. 937 for Bangalore-Chennai route to increase its customer base. This movement in the Airline industry did benefit the common man, as the fares were affordable by all the sectors of the society. It definitely impacted the Airlines as it was difficult to manage the operational costs, but they were helpless.

Air Asia has come out with a new scheme to sustain in the market and manage the operational costs.  Air Asia will connect Bangalore with Jaipur and Chandigarh for a fare of Rs. 1,999.  The ticket bookings will soon be opened for the public, but the flight operations will start only from the month of September.  The flight duration from Bangalore to Jaipur and Chandigarh will be around two hours.   Air Asia is prepared with the new scheme and is hoping that bookings will soon be full as the offer is very lucrative and people cannot resist it.   Bangalore being an IT hub, houses many of North Indians, who longs to visit their family, but cannot afford the travel time and the air fares.   This scheme will definitely make such journey comfortable and affordable.

Air Asia is planning to add one craft per month to build its fleet. The Management is of the opinion that the load factor is much higher in the current routes than that was budgeted.  The load factor between Bangalore and Goa is 96 percent and Bangalore-Chennai is 85 percent.  The Bangalore-Kochi route has a load factor of around 90 percent.  The Cargo capacity of Air Asia is around 3.5 ton. Air Asia  is in talks with other airlines for a strategic tie up, to utilize their cargo capacity to the maximum. The preferred route would be Bangalore-Goa.

Plan up your trip, before the booking is full!

 

By Prithviraj Singh Chauhan

Part time journalist, full-time observer. Editor-in-Chief at The Indian Wire. I cover updates related to business and startups.

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