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Air India compounding a price war that is causing industry losses: Jet Airways

17-Nov-2011 10:16 AM

Jet Airways senior VP finance M Shivkumar stated Air India is compounding a price war that has caused industry-wide losses, weakened yields, prompting Kingfisher Airlines to cut unprofitable routes (Bloomberg, 17-Nov-2011). "Air India is discounting fares and that’s absolutely a problem. Ideally, fares should go up when oil-import costs go up. That’s not happening and that’s why airlines are in this situation," he said. Air India spokesman K Swaminatahn stated the carrier’s “prices are determined by market forces”.