oneworld

American Airlines' new basic economy fares are working as envisioned, providing a boost not only to the carrier's main cabin fares but also to the fares charged by competitors, according to an airline analyst's review. "If network airlines can pull this off in larger scale, which we think they can, it is a potentially enormous synthetic fare increase -- though it will take time," Wolfe Research airline analyst Hunter Keay wrote in a report. "It also makes some of this new capacity growth even more tolerable. Keay said he tracked American's basic economy fares in 10 markets every day for 5 weeks. He found that in the week to 2 weeks before travel, the availability of basic economy fares diminished and the level of main cabin fares "increased sharply." In fact, he said, American's lowest priced main cabin fares rose by an average of 117% during the period. <br/>

A stated intention by Qatar Airways to start a fully owned domestic Indian carrier has the Federation of Indian Airlines voicing objections to the govt on sovereignty and security issues, quite apart from concerns that the Qatari airline could eat into the fledgling yields of India’s airlines. Arguing that the move would conflict with the “Make in India” policy that encourages Indian companies to establish new businesses domestically, SpiceJet chairman Ajay Singh has voiced particularly vociferous criticism. “This will not get any investment into India,” he said. “When you set up an airline, you lease aircraft, and this will be done from outside India.” In March, Qatar Airways CE Akbar Al Baker said he will concentrate his efforts to establish an Indian airline once Qatar took its planned 49% stake Italy’s Meridiana. <br/>