The tussle for cornering a share of international passengers is getting hotter. Jet Airways is offering up to 50 per cent discounted fare to Bangkok, Dubai, Muscat and Singapore to attract loads and lure away passengers from low cost carrier, IndiGo.
February-March are lean seasons for leisure travel. With the closing of Dubai shopping festival, loads on this sector also dip. International sector contributes 55 per cent to Jet’s revenue and in winter, the sector had an average load of 80 percent. Amongst the international airlines, Singapore Airlines has launched lower fares to coincide with the launch of its two additional flights from Mumbai.
Air India which came under criticism for dropping fares last summer, has kept its December fare levels intact. According to airline sources, it is holding on to relatively higher fares expecting improved revenue. “We are offering low fares to stimulate the demand,’’ a Jet Airways source said. The strategy is also to poach passengers from IndiGo and Kingfisher. Jet is also selling discounted one way fare to Dubai and Muscat, to attract labour traffic.
IndiGo went international last September with Rs 9,999 return fares to Dubai, Bangkok, Singapore and Muscat routes. This enabled the airline to make its presence on the international sector.
Jet is operating thrice daily on Mumbai-Bangkok and Mumbai-Dubai, and the lower fares will enable the airline to fill up its flights.
“IndiGo is gaining market share on international sectors. Jet is trying to compete with IndiGo by offering lower fares. This is not travel season so outbound lows are in any case low,’’ said Pradip Lulla, ex-president Travel Agents Federation of India.
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An Air India executive said the loads on international routes are about 70 per cent and there has been no impact on its booking. An executive from a Gulf carrier too said their airline too will not be impacted. “We carry traffic beyond to Europe and Africa and we will not be affected.’’
Singapore Airlines general manager G M Toh said special promotional fares is being introduced following addition of two extra flights.
“Currently we have 17 weekly flights and from March 25 we will have 19 weekly flights between Mumbai-Sinagpore,’’ he said.