?Airfare wars inevitable? | Latest News India - Hindustan Times
close_game
close_game

?Airfare wars inevitable?

PTI | By, New Delhi
Nov 19, 2004 01:46 AM IST

Full service carriers and low-cost airlines will coexist, but the traditional carriers will have to decide on the service and product offering they want to have.

Full service carriers and low-cost airlines will coexist, but the traditional carriers will have to decide on the service and product offering they want to have.

HT Image
HT Image

“The mistake that most of the full service carriers make when dealing with no-frills airlines is that they try to kill them by offering lower fares,” feels Jan Carlzon, the man who turned SAS around and in the process gave the mantra: “We don’t fly planes, we fly people.”

Now catch your favourite game on Crickit. Anytime Anywhere. Find out how

The reason is that airlines which start from nothing can gain market share, but established carriers which cut prices lose share in a market where they are strong. Even in the US, the traditional airlines have not established themselves yet, perhaps with the exception of SouthWest.

In Asia, traditional airlines are trying to find new ways of developing the market and low-cost carriers are creating confusion in the market place as well as in the minds of traditional players. “A shakeout will happen and there will be one or two low cost carriers and some of the traditional carriers will survive,” feels Carlzon, who is in India to participate in two seminars on December 1 and December 3, based on his book -- Moments of Truth.

In a country like India, the challenge is to take on more and more competition and cut costs by 50%, said Carlzon.

Get World Cup ready with Crickit! From live scores to match stats, catch all the action here. Explore now!

See more

Get Current Updates on India News, Budget 2024, Weather Today along with Latest News and Top Headlines from India and around the world.

SHARE THIS ARTICLE ON
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, June 21, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On