Opinion- Jet- Stress Signals - Committing Harakiri?
Neelam Mathews Feb 21, 2013 Analysts we spoke to could not fathom Jet Airways rational for the destructively low fares it has put into place- around two million tickets with immediate effect. The only people with smiles on their faces are the passengers who get a respite from the comparitively high but saner prices that had come to roost. Now with Air Asia around the corner with a penchant for cutting fares, I can see all airlines sweating before summer comes. And while Jet might have set the trend for cut throat prices with SpiceJet and Indigo to follow, the fact remains that operating costs of these carriers are around 45% less than a full service carrier like Jet that has to bear the costs for FFP, IFE and catering costs among others. So the question is: "Who is hurting whom and who is committing harakiri here? While SpiceJet had a limited offer last month for slashed fares, it did not dilute its immediate travel nor cannabalize on existing traffic...