No takers...

 

 

The low airfare strategy adopted in January by the players in the Indian aviation sector has failed miserably as it did not stimulate the anticipated growth in the number of air travellers. The Directorate-General of Civil Aviation (DGCA) latest report reflects the dilemma of the airlines as it revealed that there has been a 14.65% decline in the domestic air traffic in the month of January as compared to the same period in the previous year. This has forced the domestic players to take a u-turn and get back to high airfares to increase the yields so that they can balm their bleeding bottomlines. Kingfisher, SpiceJet, Air India Indigo, et al have already increased their airfare by 15% to 20% after the New Year slash of about 50%.