Indian Domestic airlines Kingfisher, SpiceJet and IndiGo are now planning to open ‘rang7’ – An Online Travel Portal. These domestic airlines have founded a way to save on agent commission and service charge.
These 3 airlines under the banner of Federation Indian Airlines (FIA) are planning to launch an online travel portal – rang7 – to sell tickets. The Internet has emerged as one of the cheapest and most convenient way to sell air tickets. And that’s why during the time of recession, these airline companies are launching rang7 – The Online Travel Portal.
According to Industry estimates, distribution of air tickets through travel agents and travel portals such as Makemytrip.com and Yatra.com costs airlines nearly Rs.200 crore annually.
rang7 is likely to be launched in next two months. It will show fares offered by different airlines in ascending order, unlike existing portals which show fare options in order they want. A Venture Capital fund has committed to invest close to US $ 3 Million in the company.
The Business model of rang7 is based on the lines of Orbitz in the US and Opodo in Europe.
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