Rang7, the OTA from Spicejet, IndiGo and Kingfisher that was launched in the month of May, 2009 (on the lines of Orbitz) has been shutdown.

The idea behind Rang7 was that these airlines will team up and reduce agency cost (Indian carriers spend close to Rs. 200 Crore in distribution cost, given away to travel agents and travel portals such as Makemytrip, Yatra and Cleartrip.com) as well as distribution cost.

The portal raised an investment of approximately $3 Million and participating airlines owned an equity stake in the portal. Infact, we also asked Cleartrip and iXiGo on their views and the interview is a must read, if you want to understand the OTA industry.

We earlier mentioned the confusion over the identity, and airlines decision to not participate in this venture; but the meat of the matter is that the portal has been shutdown.

A win for OTAs? or a case of bad takeoff or vaporware in planning?

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