17-Nov-2011 10:16 AM

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

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”. 

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More