IndiGo, Air India and GoAir join fare war

Apr 04 2014, 04:27 IST
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SummaryTwo days after the aviation regulator pulled up low-cost carrier SpiceJet for its R1 supersale offer, calling it “predatory pricing”

Two days after the aviation regulator pulled up low-cost carrier SpiceJet for its R1 supersale offer, calling it “predatory pricing”, India's largest airline by market share IndiGo, state-owned Air India and GoAir have joined the fare war.

With limited seats available, IndiGo is offering one-way tickets starting at R1,389 (taxes extra) till April 5, which are valid for travel between July 1 and September 30 this year. Tickets, however, have to be booked at least 90 days prior to travel.

Under this scheme, Delhi-Mumbai return flights are available at a 37% discount (R5,096), as compared to rates before the sale. GoAir is also offering 30-40% discount on tickets booked 90 days in advance.

Meanwhile, Air India launched a 'Monsoon Bonanza' scheme, under which one-way tickets are on offer for as low as R1,499 (excluding taxes). Under the scheme, which is largely for the domestic leg of most international flights, bookings have to be made by April 5 for travel till September 30.

Sharat Dhall, president at Yatra.com, said, “As anticipated, IndiGo has dropped prices post SpiceJet’s sale announcement for July to September. With India being a price elastic market for air passengers, these discounts are being used by airlines to create a market for themselves and attract travellers”.

He added: “The advance discount fares continue to stimulate the market and offer lucrative opportunities for those who are willing to book early. We have noticed our sales jump by five times since SpiceJet announced its sale and expect the momentum to continue with the drop in fares by IndiGo.”

India sees fall in air traffic in February

India is the only domestic market in the world to see a decline in air traffic demand this February compared to last year, even as global traffic continued to show "solid" growth in the same month, IATA said on Thursday. India's domestic air traffic fell 1.8% in February compared to the same month in 2013, making it "the only domestic market to see a contraction in demand”, International Air Transport Association said. PTI

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