New Delhi: Full-service airlines have flagged up concerns about the financial health of the domestic aviation industry on account of frequent flash sales announced by budget carriers. Taking note, the ministry of civil aviation has resolved to monitor discount schemes announced by domestic airlines and look at measures to curb predatory pricing.
A senior official in the ministry said, “The airlines have raised concern about budget carriers offering fares below the cost price. The airline industry is already burdened with heavy losses and we are looking at ways to ensure Indian carriers do not go bust on account of following such a practice.”
The ministry is considering constituting a team to monitor discount schemes. “The concern is all these schemes have not been initiated by financially-strong carriers,” added the official.
The industry has seen a spate of discount offers since January, most by SpiceJet. The frequent flash sales have forced others to lower fares to remain competitive.
30/10/14 Sharmistha Mukherjee/Business Standard
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A senior official in the ministry said, “The airlines have raised concern about budget carriers offering fares below the cost price. The airline industry is already burdened with heavy losses and we are looking at ways to ensure Indian carriers do not go bust on account of following such a practice.”
The ministry is considering constituting a team to monitor discount schemes. “The concern is all these schemes have not been initiated by financially-strong carriers,” added the official.
The industry has seen a spate of discount offers since January, most by SpiceJet. The frequent flash sales have forced others to lower fares to remain competitive.
30/10/14 Sharmistha Mukherjee/Business Standard
