Tuesday, March 17, 2009

Domestic Airlines in India and Practice of imported Cartelization

Domestic Airlines in India and Practice of imported Cartelization

Everyone would have observed lately the dramatic up and down of Airfare in India.
As the crude was going high ..everyone in airline industry crying for high fare and higher "Fuel Surcharge" which taken from customer as Tax, tax in India means the part which goes to Government directly.

If airfare becomes directly proportional to fuel price while fuel price keep rising, why not it comes down when fuel prices has dramatically cooled off?

How come every Airline in India suddenly hit the block of customers and raised the fare, as they give reason of sudden rise in fare due to number of bookings in a timeframe, suddenly customer reached these airlines in such a meltdown economy when a penny less or more is finding more relevance in day to day life.

I feel, gone are days of healthy competition b/w economy airlines.
Now comes days of Cartelization and Cash Rich owner of one airline cutting wings of cheap airlines. Yes, I am talking of Mr Vijay Mallya.

These kind of polarization is certainly not innovative, this resembles the case of Microsoft which had put substantial energy to cut wings of upcoming new ventures at their early ages.

Mr Mallya has already acquired "Air Deccan" the innovative leader of Cheap Deomestic airlines Industry, I personally give all credits to Mr Gopinath for bringing this industry in light.

He has given Jet Airways a hand of friendship with cunning smile, which could cost Jet it's run for life.

Spicejet and Indigo are now two major airlines left for cheap tickets which have to agree with all possible cartel, as they are not big enough to sustain agasinst giants.

1000 Rs fare are part of dreams now, currently are days for 3K+ fuel surcharge holding tight still up there while fuel prices has gone down by almost 50-60%.

There is another dynamic to woo and fear customer planning to fly in future.
Recently Spicejet and Indigo has announced different kind of schemes offering almost same fare(50% lesser than current fare) fore same timeframe.

Suddenly just after withdrawal of this offer Jetlite brought an offer on exactly same price. What does this suggest....
May be after sometime there would be another limited offer from other airline to bring customer back with greed of traveling on less fare, till then keep all customer cross finger speculating when that comes?

Offer timeframe is being utilized to book bottomline, after offer tickets are being sold on higher prices gradually to increase anxiety.

Till there is no elected govt in rule DGCA could be bribed easily to follow such path, rediculous?

While International fare keeps falling domestic airfare in India on rise, what dynamic it could be. I am completely surprised and right now could keep speculating reasons!

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