oppn parties Air India Tries To Address The Problem Of Empty Seats

News Snippets

  • The government decides to decriminalize more than two-thirds of penal sections in the Companies Act
  • Muslim groups tell the Supreme Court that they want the Babri Masjid to be restored
  • Muslim groups claim that while they were asked questions in court, Hindus were not questioned
  • Postpaid mobile services restored in Jammu & Kashmir from today, but still no internet
  • Abhijit Banerjee, an Indian-American currently a professor at MIT, wins the 2019 Noble prize in economics jointly with two others
  • Industrial output slumps in August as the IIP shrinks by 1.1%
  • Prime Minister Modi and Chinese President Xi Jinping watch a cultural show at the Shore Temple in Mamallapuram
  • J&K administration lifts the ban on entry of tourists in the Valley, but it remains doubtful how many will visit without being able to use mobile phones and internet
  • After Sena asks members to support the BJP candidate in Kalyan, 26 party corporators and 300 members resign setting off a crisis
  • The Centre sets up a 12-member committee to suggest systemic changes in the GST structure to improve compliance and collection, prevent misuse and evasion and rationalize rates and slabs
  • In line with the RBI outlook on the Indian economy, rating firm Moody's also downgrades growth forecast from 6.8% to 5.8% this year, saying the economy is experiencing a pronounced slowdown
  • HDFC chairman Deepak Parekh says the financial system in India does not offer foolproof security for misuse of the savings of the common man
  • Shivinder Singh and Malvinder Singh, promoters of Ranbaxy and Fortis, arrested for their role in Religare Finvest scam
  • Supreme Court says marriage can be dissolved if it has broken down irretrievably
  • DA of Central government staff hiked by 5% to 17%
Sourav Ganguly is the new president of BCCI, says conflict of interest is a big concern
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Air India Tries To Address The Problem Of Empty Seats

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Writes for a number of publications.
While travelling to Kolkata from Dibrugarh in Assam on a morning flight of Air India a few days back, one was surprised to see more than a dozen vacant seats on a sector that is generally overbooked, more so when flights had been cancelled for two days due to Cyclone Fani. Empty seats are a total loss to any airline and all efforts must be made to fill up the planes, especially in sectors where there is regular traffic.

Hence, one was pleasantly surprised when Air India announced recently that it would offer huge discounts (up to 40%) on unsold seats up to 3 hours from the scheduled departure of the flight. This means that the airline has taken stock of the situation and is trying to find a remedy for it. Contrary to general perception, this decision of the airline shows that there are some in the upper management who are alive to the situation and are trying to do their best to cut losses.

Consider the above situation. The quoted price of a ticket on that day was about Rs 8000. It would have deterred a few from travelling. It meant that 12 or more seats were left unsold on the flight. Now, if Air India offered the same seats at 40% discount three hours from departure, one is sure that at Rs 4800 (the price that is normally prevalent in the sector even a month in advance), more than 10 seats would have been sold. It would have meant that Air India would have earned nearly Rs 50000 more on that particular flight.

The decision will come as a boon for passengers who have to travel in an emergency. They can now hope to get tickets at a rate similar to one if they had planned the journey one month in advance. This will also mean that the badly bleeding airline will also cut down its losses and fill up its planes. Air India can still turn around if it trims its bloated workforce, streamlines its operations and pays attention to such ostensibly 'small' things which add up to huge losses.