Now, flyers book tickets closer to departure date
While some US carriers have already closed down, Indian carriers are also reeling under the impact of ever-increasing crude prices. In pics: Most expensive ship
By TNN |
NEW DELHI: With mounting oil prices and losses denting airline industry, passengers are now worried that the tickets they booked in advance may become redundant as airlines may fold up before their travel date.
According to JetLite COO Rajeev Gupta, consumers in Europe are protected against such situations in two ways. "There���s an organization in Britain called ATOL that takes insurance from airlines and if someone goes out of business, that money will be used to protect passengers��� interests. In Europe, there are agencies to whom a passenger or travel agent can pay a small premium that will insure them from such closures," Gupta said.
While some US carriers have already closed down, Indian carriers are also reeling under the impact of ever-increasing crude prices and some of them are now desperate for funding to remain afloat.
The surging air fares, however, seem to be helping passengers on this count. With advance tickets on absurdly low fares becoming history, Indian domestic passengers are now booking closer to date of departure and hence sparing themselves the risk of a long gap between date of booking and travel.
According to JetLite COO Rajeev Gupta, consumers in Europe are protected against such situations in two ways. "There���s an organization in Britain called ATOL that takes insurance from airlines and if someone goes out of business, that money will be used to protect passengers��� interests. In Europe, there are agencies to whom a passenger or travel agent can pay a small premium that will insure them from such closures," Gupta said.
While some US carriers have already closed down, Indian carriers are also reeling under the impact of ever-increasing crude prices and some of them are now desperate for funding to remain afloat.
The surging air fares, however, seem to be helping passengers on this count. With advance tickets on absurdly low fares becoming history, Indian domestic passengers are now booking closer to date of departure and hence sparing themselves the risk of a long gap between date of booking and travel.
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SpiceJet VP (marketing) Kamal Hingorani admitted the booking curve has shortened. "On sectors like Delhi-Mumbai and Ahmedabad-Mumbai, we are selling most of our seats just one day in advance. People know there���s access capacity and no need to rush." JetLite���s Rajeev Gupta said 60% of the LCC���s tickets were sold 72 hours prior to the flight���s departure time.
Courtesy: Times of India
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