Jet Airways crisis: Worst hit! Aviation firms face heat of international flights cancellations
The cancellation of flights is creating demand-supply constraint leading to rising in fares is affecting them across their business, leisure and B-leisure segments.
Jet Airways deciddc to remain grounded, though, for a temporary period. But, the decision is taking its toll on the tours and travel planning companies. Due to the summer season, people have already decided their destination to beat the heat or to enjoy the vacation period ahead, in this situation such cancellation of the Jet Airways flights has put international travelers in limbo. The cancellation of flights is creating demand-supply constraint leading to rising in fares is affecting them across their business, leisure and B-leisure segments with immediate impact given that this is the key vacation season for India.
Speaking on the rise of heat tours and travel companies are facing ahead of the summer vacation Indiver Rastogi, President - Global Business Travel - Thomas Cook India Limited said, "The cancellation of flights is creating an imbalance on the supply side in the face of peak demand and the resultant rise in fares is affecting us across our business, leisure and B-leisure segments with immediate impact given that this is the key vacation season for India; also potential cascading mid and long term impact- if in the absence of a solution." Rastogi of Thomas Cook India said that the Thomas Cook itself has been witnessing a significant 25 per cent growth of travelers from metros and strongly emerging regional markets, and Jet’s network offered significant customer benefit for travel direct non-stop to short hauls like Abu Dhabi-Dubai and Singapore; equally via a viable hub and spoke model to mid hauls in Asia (eg Bali, Japan-Korea) and long hauls like Australia-New Zealand and Europe-USA.
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On rising airfare in the wake of Jet Airways crisis, Indiver Rastogi of Thomas Cook said, "Our teams are in constant touch with our customers impacted due to the canceled flights and offering them best available optional flights and routes to enable them to continue on their booked holidays. Yes, we do see cascading impact of rising fares on last-minute bookers who may defer plans till fares."
After the Jet Airways management decision to stop international flight 440 slots have gone vacant at Mumbai and Delhi airport. The Civil Aviation Secretary Pradeep Singh Kharola on April 18th had a meeting with the airport operators and airlines where issues related to the rising international flight fares and vacant slots etc. were discussed.