August 8, 2022

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Indian Airlines

Rs 899 Air Fare Launched by IndiGo, Railways Lag Behind


Rs 899 Air Fare

IndiGo’s parent company InterGlobe Aviation has reported a loss of Rs 6,521 million in the quarter ended September.

It is thus established that higher costs and intense competition also took a toll on the bottom line of a giant like IndiGO. This is the first time that IndiGo is seeing a quarterly loss since getting listed in November 2015.

Despite a setback like this, IndiGo came up with trend setting offer.

William Boulter, Chief Commercial Officer, IndiGo happily today released a press statement: –
“We are delighted to announce this three day festive sale across our network between October 24 to October 26. Diwali is one of the most auspicious occasions to meet families and friends and through this festive sale we aspire to create more flexibility of choice for ours customers to fly at low fares. We are sure that customers will quickly grab the seats we have available, starting at fares as low as Rs 899.
Rs 899 Air Fare
In this way, IndiGo has launched a Diwali special sale across its network of 64 destinations – a move that would further impact the bottom line of already struggling  other airlines. 
That is – 
Sale period :  October 24, 2018 till October 26, 2018, and 
Travel period :   November 8, 2018 till April 15, 2019
1 million first-come-first served lucky passengers are to be benefited. 
A sale like this by market leader IndiGo –  that alone flies more than 43% of air passengers in India – during a peak travel season of the year is bound to be matched by other carriers. (See: Data)
Rs 899 Air Fare
The Railways on the other hand is still struggling with its lengthening waiting lists and inadequate capacity. Rs 899 fare is far too fetched for Indian Railways.
But due to rising cost of operations and declining yields, other airlines in India may not report similar healthy profitability numbers.
Other competing airlines –  that together fly the balance 57% of air passengers in India, however, complain that this is a clear cut sign of predatory behavior. IndiGo has earlier been penalised for unfair business practices. (See: Unfair)
All of them together protest and raise a question –

Will not a sale like this during the month of Diwali impact the bottom line of the industry?

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