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Regular-article-logo Sunday, 13 July 2025

It's a fare battle

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The Low-cost Carriers Are Fighting For The Sky And Prices Are The First Thing To Drop, Says Samita Bhatia Published 05.08.06, 12:00 AM

It’s SpiceJet’s Red Hot Fare and will get you an air ticket for just Rs 999 on the Delhi-Calcutta route (one of the most popular sectors for airlines). But perhaps you’d like to fly the newest low-cost carrier in the skies, IndiGo. The airline has commenced operations and will take off between Delhi and Calcutta on August 30 with a fare of Rs 1,099.

No frills airlines are criss-crossing Indian skies with fares that are anywhere between 30 per cent and 40 per cent lower than full-service airlines. And the offers are getting better. IndiGo’s arrival, for instance, has resulted in a new bout of cost cutting. It matters little that the airlines offer no extras and are no-nonsense. “It’s all about designing a travel experience that is simple and straightforward. We cater to the needs of travellers who don’t want to waste time or money in the process of travelling,” says Bruce Ashby, president & CEO of IndiGo.

Walk across the tarmac to Jeh Wadia’s low cost GoAir which is flying with the objective of “commoditising air travel”, as he says. Wadia is targeting not just train travellers, but also Volvo Bus passengers.

The newcomers all have a different view of air travel. According to Ajay Singh, director SpiceJet, today all that the passengers are concerned with is on-time performance, a safe and comfortable journey teamed with wallet-friendly fares. The low-cost carriers (LCCs) have struck the right note with passengers by operating on the principle of dynamic fares. Which means that the earlier the passengers book their tickets, the less they pay.

For instance, Air Deccan does not have fixed fares for any sector. Air Deccan’s MD Captain G. R. Gopinath, says: “All fares are dynamic and fluctuate depending on time and availability” Beginning at Rs 500 (plus taxes) Air Deccan fares move through different levels and touch the last day’s fare.

Or for example on SpiceJet if you book one month in advance, the Calcutta-Delhi fares will be Rs 1,599 while the return would be Rs 1,099. Book the same ticket 15 days in advance and the Calcutta-Delhi fare may still be Rs 1,599 but the return may now be Rs 2,399. A day in advance the same journey to Calcutta from Delhi will cost Rs 2,198.

Such flexi fare structures have obviously caught the fancy of travellers. Keyur Joshi, co-founder and COO of the online travel agency MakeMyTrip.com (MMT), says, “the online sales of LCC is growing 10 per cent month-on-month. Ever since LCCs took to the skies we have witnessed an increase in domestic air travel and the sale of tickets booked via the Internet.” While MMT now has GoAir and SpiceJet on board, soon it’ll include Air Deccan and Indigo in its fold.

For travellers this means more options. IndiGo’s introductory one-way fares (excluding taxes and surcharges) look something like this: on August 20, the airline will begin operations between Guwahati and Calcutta for Rs 1,399.It is now offering Delhi-Guwahati at Rs 2,549, Delhi-Imphal at Rs 3,598 and Guwahati-Imphal for Rs 1,029

SpiceJet, in addition to its Red Hot Fares of Rs 999 on select sectors including Delhi-Guwahati, Calcutta-Chennai and other destinations, is offering Red-Hot Special Monsoon Fares starting at Rs 499 and going up to Rs 3,699 (valid till September end). Expect to pay Rs 499 for a Ahmedabad-Mumbai ticket, Rs 3,699 for a Calcutta-Bangalore trip, Rs 1,099 for Delhi-Calcutta and Rs, 1,999 on the Calcutta-Chennai sector.

The airlines may not offer haute cuisine at 30,000 feet but they are trying to ensure a good travel experience — starting from the point the passengers book tickets. While the Internet, travel agents and airport counters continue to be booking options, there are other consumer-friendly methods as well.

IndiGo passengers can book their tickets with their GPRS-capable mobile phones or mobile PDA’s. The mobile booking service is available at http://mobile.goindigo.in. Air Deccan also sells its tickets through Reliance Web World, HPCL Petrol bunks and mobile ticketing vans. GoAir’s passengers who don’t own credit or debit cards or have access to a computer can access tickets at GoTata Indicom Outlets, GoInlott outlets, GoCyber cafés and GoPCOs.

The airlines are wooing passengers with attractive fares and the promise of expansion into more cities. By end-2008 SpiceJet expects to add 23 new aircraft to its fleet, which will operate more than 250 flights on around 24 destinations. Air Deccan too has growth plans and is expecting to induct over 90 aircrafts by 2012. IndiGo will have six planes by the end of this year and an additional nine next year, taking the fleet size to 15 by the end of 2007. The airline proposes to serve approximately 30 Indian cities by 2010 with a fleet of 40 A320s.

The airlines have opened up a host of choices. All you have to do is take your pick.

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