AI Is Loving IT's Problems
Mar 11, 2012 | 4:24 am
#1
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AI Is Loving IT's Problems
http://www.firstpost.com/business/de...ry-240400.html
After a fantastic January, their February has been good too. I assume that 9W, 6E, G8 and SG have also seen these effects. Clearing out the excess capacity in the market (in the form of IT) has clearly been very good for the rest of the market.
I just hope that nobody decides to capacity dump now...
Debt-stricken Air India has registered another improvement in year-on-year performance in February, with average passenger revenue growing by a healthy
32 percent, a senior airline official said.
While revenue from international network grew 20 percent, the same from the domestic network rose nearly 58 percent during the period, taking the overall revenue rise to 32 percent.
The airlines on-time performance has improved by up to 80 percent across the network, in the first week of March, reaching as high as 88 percent on 8 March, the official told PTI.
While capacity on its international services remained more or less stagnant, on the domestic service, it went up by 20 percent and on the overall network by 4 percent, he added.
There was also an increase in the number of passengers carried, which went up 13.4 percent on the overall network, he said.
The airlines yield per revenue kilometre increased 17 percent on international routes and nearly 31 percent on its domestic routes. On the overall network, there has been a 24
percent increase in the yield.
Increase in fuel cost, however, continues to dent Air Indias substantial increase in revenues, he said.
However, aviation turbine fuel prices alone registered an increase of 20 percent in February. For the entire year, Air India expects the impact of the increase in aviation
turbine fuel to be in the region of Rs 2,000 crore.
On a cumulative basis, from April 2011 to February 2012, its fuel cost has gone up by 40 percent. If it was not for the fuel price we would have done far better, he said. He said the airline is also examining the idea of direct import of fuel as recently permitted by the government to save on fuel cost.
...
32 percent, a senior airline official said.
While revenue from international network grew 20 percent, the same from the domestic network rose nearly 58 percent during the period, taking the overall revenue rise to 32 percent.
The airlines on-time performance has improved by up to 80 percent across the network, in the first week of March, reaching as high as 88 percent on 8 March, the official told PTI.
While capacity on its international services remained more or less stagnant, on the domestic service, it went up by 20 percent and on the overall network by 4 percent, he added.
There was also an increase in the number of passengers carried, which went up 13.4 percent on the overall network, he said.
The airlines yield per revenue kilometre increased 17 percent on international routes and nearly 31 percent on its domestic routes. On the overall network, there has been a 24
percent increase in the yield.
Increase in fuel cost, however, continues to dent Air Indias substantial increase in revenues, he said.
However, aviation turbine fuel prices alone registered an increase of 20 percent in February. For the entire year, Air India expects the impact of the increase in aviation
turbine fuel to be in the region of Rs 2,000 crore.
On a cumulative basis, from April 2011 to February 2012, its fuel cost has gone up by 40 percent. If it was not for the fuel price we would have done far better, he said. He said the airline is also examining the idea of direct import of fuel as recently permitted by the government to save on fuel cost.
...
I just hope that nobody decides to capacity dump now...
Mar 11, 2012 | 5:33 am
#2
Join Date: Mar 2012
Posts: 29
I am booked on IT for DEL-DXB-DEL next week. Considering the ongoing fiasco the only insurance for me was to buy AI also for same dates which I did atleast at 30% higher prices than IT. I was also shocked to note that AI is operating 777 on the sector!
Am keeping both options open at present and see how things move on in the week ahead with IT and if they go down atleast I can bank upon AI.
So yes AI surely is making merry and another point their fare was even cheaper than INDIGO!
Am keeping both options open at present and see how things move on in the week ahead with IT and if they go down atleast I can bank upon AI.
So yes AI surely is making merry and another point their fare was even cheaper than INDIGO!
Mar 11, 2012 | 6:50 am
#3
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Enjoy the flight..
As for 6E's fare, that shows you something about the types of yields they can command. It's all about branding and perception...
As for 6E's fare, that shows you something about the types of yields they can command. It's all about branding and perception...
Mar 11, 2012 | 8:54 am
#4
Join Date: Mar 2011
Location: HYD/CHI
Posts: 794
I am booked on IT for DEL-DXB-DEL next week. Considering the ongoing fiasco the only insurance for me was to buy AI also for same dates which I did atleast at 30% higher prices than IT. I was also shocked to note that AI is operating 777 on the sector!
Am keeping both options open at present and see how things move on in the week ahead with IT and if they go down atleast I can bank upon AI.
So yes AI surely is making merry and another point their fare was even cheaper than INDIGO!
Am keeping both options open at present and see how things move on in the week ahead with IT and if they go down atleast I can bank upon AI.
So yes AI surely is making merry and another point their fare was even cheaper than INDIGO!
Mar 11, 2012 | 8:59 am
#5
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If I were you, I'd cancel the IT ticket and try to get my money back asap. My worry is that IT will cancel the flight before you go and their bank accounts will be frozen so you won't be able to get a refund. Or, even worse, once you're in DXB, you find out that the return flight was canceled and you're forced to buy a last-minute international one-way ticket.
Make sure that the fine print of your credit card allows for this though. If you purchased the ticket more than 60 days before the flight (or more depending on your specific card), then you should initiate chargeback on the 60th day for refusal to refund. Otherwise, you will never see your money again.
Mar 11, 2012 | 9:10 am
#6
Join Date: Mar 2011
Location: HYD/CHI
Posts: 794
You're right- it's important to read the fine print of the credit card and perhaps call them and ask for details now.
Mar 11, 2012 | 9:18 am
#7
Join Date: Mar 2012
Posts: 29
Any case am booked through CLEARTRIP with them. Also I bought the ticket from them in Dubai in AED on my UAE issued credit card from the UAE entity of Cleartrip. If they play around they would have to battle it out in UAE where unlike India courts do take note of such affairs.
As PVD said i am waiting for it to cancel out in a day or two... although from 40 days every scheduled flight to Dubai did Fly! Lets see what happens for next 72 hours and I shall make my move accordingly.
As PVD said i am waiting for it to cancel out in a day or two... although from 40 days every scheduled flight to Dubai did Fly! Lets see what happens for next 72 hours and I shall make my move accordingly.
Mar 11, 2012 | 9:38 am
#9
Join Date: Mar 2012
Posts: 29
- I would not choose a A321 over a 777. I prefer a large plane and since childhood my first flight on EK 777 I have loved it! AI won when I saw equipment listed as 777 for the flight now its my luck if they at last moment dont change it!
- AI is full service and in 6E with a higher fare if I have to buy everything it doesnt make sense for me atleast.
I do like 6E. Traveled domestic on it quite alot very efficient but compared to full service they would always be my second choice unless they offer me dirt cheap price!
Mar 11, 2012 | 9:43 am
#10
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Mar 11, 2012 | 6:34 pm
#11
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Unless AI was substantially cheaper than SG/6E, I'd still stick with the low cost options. To me, food / "full service" on a 2 hour domestic hop is a non issue and getting to my destination on time is paramount, and SG/6E are less susceptible to the whims and fancies of the Civ Av Minister and babu's.
Mar 12, 2012 | 5:14 am
#13
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Mar 12, 2012 | 7:29 am
#14
Join Date: Mar 2012
Posts: 29
EDIT: Todays flight to DXB IT 41 was cancelled!
Last edited by Punjabi007; Mar 12, 2012 at 7:39 am
Mar 12, 2012 | 2:25 pm
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