Mr. Essay

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Airlines Tariff War: Air Carriers vs. Intermediaries! “The on-going tussle with in the Airline Industry has had wider repercussions not only on the Carriers, Employees and travel agencies, but poses a major threat to the industry as a whole.” “As an airline it is our commercial prerogative to market directly to the consumer. There is also a message that airlines are trying to get across to the customers - ‘Keep checking our website, we could have something better to offer’,” - Mr. Foo Chai Woo, GM, India, Singapore Airlines Couple of years back, it was raging moolah for the Airline Industry, with most number of airlines having full occupancy ratio and even going for expansion plans and promising careers for youth, due to the advent of the LCC: Low Cost Carriers in India, pioneered by Captain G R Gopinath, MD, Air Deccan, who had revolutionized air travel which was a distant dream for millions of Indians. Soon this craze picked up and airliners exploited the low cost carrier business and companies such as SpiceJet, Indigo, JetLite and GoAir have tasted success. With the Recession impacting Government of India’s largest grosser, the IT Sector, which is evident from the melting Global Economy and US in particular, if not due to the fresh Satyam saga, has had a rippling effect on the aviation industry as well. This article focuses on the tariff war by both the sections of air carriers, both low cost carriers and by full service ones, providing best offers to the public, to grab higher market share and most importantly for compensating their operating losses. Defining Air Travel: Earlier passengers walked in or logged on to the travel agents site for comparing fares and schedules and booking flights —and at prices much lower than a decade ago for getting the cheapest deals, the medium of air travel being the much affordable one for a

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