GoAir launches new fare plan, removes rescheduling charge
GoAir launched a new fare plan having lower cancellation charges and no rescheduling fees, which the company expects will contribute about 10 per cent to its revenue this year.
By PTI |
MUMBAI: Wadias-promoted budget carrier GoAir on Wednesday launched a new fare plan having lower cancellation charges and no rescheduling fees, which the company expects will contribute about 10 per cent to its revenue this year.
The new plan, named GoFlexi Fare, would be available on all its routes, GoAir Managing Director Jeh Wadia said in a statement.
Under the new plan, the passenger would be able to make unlimited changes in its travel itinerary free of cost. Besides, GoAir has cut the cancellation changes to Rs 200 on all GoFlexi bookings.
According to analysts covering aviation sector, with the new plan GoAir is seeking a competitive edge over other low-cost airlines, who levy rescheduling and cancellation charges of Rs 500-750 on their passengers.
This might lead to similar or other competitively priced plans by its rivals as well, they said.
The analysts said GoAir is targeting frequent-flying business passengers, such as traders and executives, with the new plan. It is not the leisure travellers or occasion-flying customers making frequent changes to their schedule, but the frequent fliers who bring in bigger chunk of revenue for airlines and hence the strategy could help GoAir, they said.
GoAir said it expects GoFlexi Fares to contribute 10 per cent revenue growth during the current year.
"Our GoFlexi Fare is aimed at providing passengers the flexibility to modify their travel itinerary as per their individual needs without burdening their budgetary allocations," Wadia said.
The new plan, named GoFlexi Fare, would be available on all its routes, GoAir Managing Director Jeh Wadia said in a statement.
Under the new plan, the passenger would be able to make unlimited changes in its travel itinerary free of cost. Besides, GoAir has cut the cancellation changes to Rs 200 on all GoFlexi bookings.
According to analysts covering aviation sector, with the new plan GoAir is seeking a competitive edge over other low-cost airlines, who levy rescheduling and cancellation charges of Rs 500-750 on their passengers.
This might lead to similar or other competitively priced plans by its rivals as well, they said.
The analysts said GoAir is targeting frequent-flying business passengers, such as traders and executives, with the new plan. It is not the leisure travellers or occasion-flying customers making frequent changes to their schedule, but the frequent fliers who bring in bigger chunk of revenue for airlines and hence the strategy could help GoAir, they said.
ADVERTISEMENT
GoAir said it expects GoFlexi Fares to contribute 10 per cent revenue growth during the current year.
"Our GoFlexi Fare is aimed at providing passengers the flexibility to modify their travel itinerary as per their individual needs without burdening their budgetary allocations," Wadia said.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
