Mrniji From , joined Dec 1969, posts, RR: Posted (10 years 3 months 3 days 11 hours ago) and read 3680 times:
India's first LCC Air Deccan is going to offer 4 seats on each flight for a price of Rs. 1/- + the applicable fees of Rs. 221/-, in a bid to attract the "comman man". Bookings can be made three months in advance
TKMCE From India, joined May 2002, 841 posts, RR: 2
Reply 1, posted (10 years 3 months 3 days 10 hours ago) and read 3678 times:
4 seats on each flight - well I guess it is for the A320s and the ATR is excluded from the deal (unless you want to sell out 8% of the flight capacity in populist measures!).
And even otherwise - sounds heroic - but remember that Air Deccan hasnt increased prices even once despite the fuel prices going skyhigh (while Jet , IC et all has increased it twice),
Now if you are dumping further seats at these "sound good feel good" prices, then you have further pressure to recover costs!!! Your break even load factor goes up further and unlike earlier times not all aircraft are full always. As I understand theur recently launced HYD CCU flights are not even touching the 80% mark most days.
And dont forget the fact that with the exception of a few routes like BLR DEL or BLR HYD, Deccans timings are not suited for a same day return, an essential for a business traveller who is also more likely to pay a higher fare!!!!
Make no bones about it, Jet esp is agressive and last minute fares offerred by them are getting perilously close to Air Deccan. But remember Jet also has a steady number of full fare paying pax who pay the higher fares for the good frequencies among other things Jet offers on a route.
VictorTango From India, joined Jan 2005, 501 posts, RR: 0
Reply 3, posted (10 years 3 months 3 days 8 hours ago) and read 3652 times:
I just get a feeling that DN is kind of overdoing things a little. I don't quite know what's the market scene in India now, but I just hope it wont bring about their downfall. Like Rajeev said 9W is quite aggresive with its pricing as well. With the ever increasing fuel prices, airlines all over the world are feeling the heat. And I think DN needs to be careful here, especially with the arrival of Kingfisher.
fully agree. they are making themselves vulnerable to shakeout. Fact remains that in spite of dirt cheap flights, people will still travel by full service carrier. That way I like Kingfisher's policy, they are not aiming to be inexpensive, but rather more value for your money.