Low-cost carrier (LCC) SpiceJet started with offering heavy discounts on airfares, only to be followed by rivals IndiGo and GoAir. Not to be left behind, full-service carrier Jet Airways and national carrier Air India too jumped in the fray. Also, citing the great response received, Spicejet later extended the period for a few days.
If you are among those who missed out on taking advantage of this fare war, don't worry. Another one is probably around the corner.
Experts say this shower of sorts of airfare discounts isn't just an annual lean season thing and is, in fact, becoming a regular feature, as the 'flash discount sale' has been happening every couple of weeks in a similar manner for more than two months now. The reason is increasing competition.
Low-cost international carrier AirAsia, the Tata-Singapore airline and the Jet-Etihad deal have stepped up the competition, forcing the existing airlines to innovate and lure cost-conscious passengers with low fares, industry insiders said, adding that the introduction of jumbo planes is further expected to bring down fare prices.
"Airlines like AirAsia are known to change market dynamics wherever they operate. Indian airlines are already feeling the heat and have started reacting, thereby ensuring passengers' benefit," said Sharad Dhall, president of travel portal yatra.com.
"Innovation has come back in the market and it has helped in bringing those who had shifted to other modes of travelling in the past two years or so back to flying."
Echoing Dhall, Travel Agents Association of India president Iqbal Mulla said, "The good times for passengers as well as the tourism industry seem to have returned."
Airline insiders said most flash sales help them fill up seats, which would otherwise have gone empty, leading to further damage to the already bleeding balance sheets of most airlines.
A report released by leading consultancy group KPMG revealed the growing dominance of the LCC model, which accounted for almost 70% of the domestic capacity last year. LCCs have driven the growth in aviation and tourism through low fares, introduction of regional routes and periodic discount offers. "Full-service carriers plan to shift more seats to their low-cost offerings in line with market trends," the report added.
"India is blessed with a great geographic location, a large upwardly mobile middle class and immense tourism opportunities. We have just touched the tip of the aviation iceberg. The beauty is that our challenges are primarily related to policies, procedures, regulations and taxes. These are all man-made problems and, hence, surmountable" said Amber Dubey, partner and head of aerospace and defence at KPMG.
India is among the top 10 aviation markets in the world and is set to enter the club of top three in the next few years.
In passenger traffic terms, domestic India is the fastest-growing market, increasing at almost 10% a year. In 2032, India's domestic traffic will be the world's third-largest domestic market. In addition, five of the world's top 20 fastest-growing markets connect India. Today, one in 20 Indians travels by air and, in 2032, this will increase fivefold to a quarter of the population taking at least one flight. Along with China, more people will experience the benefits of aviation for the first time in India than anywhere else, a report by aircraft manufacturer Airbus states
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