Ups and Downs of Airlines’ Business and the Ultimate Sufferers

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First Kingfisher Airlines’ financial crisis and then hike in crude oil prices, both these factors have contributed to the present crises in Indian airlines industry. Let’s see what actions these companies are taking to overcome these problems.

One’s loss is other’s profit. It is going exactly so with Jet Airways. These days Kingfisher Airlines is going through a financial turmoil. Ever since Kingfisher has acquired Air Deccan, it is suffering losses. Kingfisher is reducing its fleet and cancelling its flights and several members of its staff are going on strike due to nonpayment of their wages. The airline has shut down many international route operations and its position has slipped to 5th in the domestic market because of all these reasons. Though Kingfisher is facing its worst of the nightmares but other airlines are enjoying the time. With every flight cancellation by Kingfisher Airline, all the business is going into the bags of other airlines. Buy business images to know more about Kingfisher Airlines and Jet Airways.


Jet Airways is getting the most of the profit. Jet Airways was the close competitor of Kingfisher Airlines and people prefer this airline as their best alternative when Kingfisher is not available. So with each cancellation all the Kingfisher Airline’s brand loyal customers are turning to Jet Airways. This airline is gaining the market shares steadily. Yes, Kingfisher Airlines is the company who is facing the crisis and other companies are getting the business but the ultimate sufferer is the traveler.

In past few days a lot of things have changed and the aviation industry has affected from it drastically. Especially the regular fliers are not happy with this change as all the airlines have raised their fares. As the global crude oil price soared, the airlines have made it costlier for the people to travel within India. About 30 to 38 % of operational cost of any airlines depends on the fuel prices so the hike was obvious. Till November last year, the airlines have raised the air fare up to 6 %, when Kingfisher Airlines cut down its operations and this year again in March the fare was raised by 10-15 %, citing the reason of fuel surcharges. Kingfisher and Jet Airways have hiked it up to Rs 200 per ticket and budget airlines are trying to use different tack-ticks to enhance their revenues. Buy online content to know more about the current price hike issue of the airlines in India.


As the top airlines like Kingfisher and Jet Airways have announced the raise in their fares, the demand of low fare domestic air tickets has increased. Air India has already announced that they are going to increase the number of economy class seats and at the same time they are going to reduce the business class seats for domestic flights as well. All other budget airlines are also trying to attract the consumers with their cheaper air fares when the top airlines are increasing the ticket rates. Jet Airways has also decided to increase the number of economy class seats. This way it could still attract a substantial number of fliers. Kingfisher Airlines on the other hand has closed the Kingfisher Red which was the low fare segment of Kingfisher airlines. Airlines are doing their best to cope with the current situation and the fliers are just hoping for lower air fares in the future. Buy latest news images to get updates about the latest fare war among the airlines in India.

John Matthew is himself an avid reader and keeps a close eye on current events and latest news, live tv in India and abroad. With years of expertise in mass media and online journalism, he has created a niche for himself in the industry and knows what to look for in the news and exactly where. He regularly provides his useful insights by commenting on the current issues of public interest through his in-depth analysis of current happenings in India and the world. His articles regularly feature in some of the well circulated and prestigious publications in India.

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