This article was first published on CNBCTV18
- Over the past few quarters, Spicejet has also consistently declared the higher RASK (revenue per available seat kilometer) and higher average fares than competitor IndiGo, India’s biggest airline.
- The future of successful airline operations will depend on the ability to keep costs as low as possible, fares as low as possible and find routes where competition stays out.
Lets do a quick search for the cheapest air ticket between Mumbai and Pune. For the next three months, prices hover around Rs 9,452. The two cities, 150 kms apart, are well connected with a six-lane expressway, a rail link and one of the shortest flights in the country. But tickets on this route cost far more those for longer routes in India.
Reason? The Mumbai-Pune flight is a feeder to an airline’s network — not a primary one, which typically would allow an airline to offer better fares due to higher frequencies. That means fewer seats are available.
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