With pilot strike coming to an end. Air India has come out with discounted fares to win back customers. The national carrier, which is limping back to normalcy after a four-day strike, said there will be a maximum of 8% cut in fares for three to six months, in different categories. The airline has lost around Rs 8 crore in cancellations during the strike period.
In a move similar to Jet Airways measures after its own pilots strike ,Air India placed advertisements in national newspapers welcoming travelers back and offered discounts, where passengers can save up to Rs 3,000 in different plans.
Air India is offering schemes where a passenger can buy a four-coupon Economy class ticket for Rs 41,316 with a validity of three months for single user, a drop of 8% compared to the earlier fare. Similarly, an eight-coupon Economy class single user tickets can be bought for Rs 82,632 with a validity of six months.
The Maharaja, as the carrier is also called, has introduced different plans for corporate houses, where employees can buy corporate tickets in the Economy class with 12 coupons, for Rs 123,948 having six months validity, with multiple user facility. A 12-coupon Executive class multiple user ticket with a validity of six months will cost Rs 1,66,800.It means an employee can use at any date like an open ticket.
“A passenger can save around Rs2, 000-3,000 per coupon in the offerings,” said an AI spokesperson.’the tickets under these schemes are available to larger number of passengers, as the number of seats has been increased in the reservation system, he added.
Recently, jet had offered a 50% discount on total fare on all domestic flights across Jet Airways and Jet Konnect; too woo back customers who went to competition due to the pilots strike.
The measures however are not likely to benefit the carrier in the long run, while they may increase load factor immediately, say analysts. The company posted losses of Rs 7,200 crore in the previous fiscal year. With borrowings of Rs 15,000 crore, the cash-strapped carrier has asked for loan and equity infusion from the government .Its current equity capital stands at Rs 145 crore.
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