Fare war in the skies: Jet slashes rates in two-day sale

Jet Airways has slashed fares by half in a two-day discount offer. The discount is restricted to Jet Konnect, the airline’s no-frills brand, and Jet Airways and Jet Konnect code-share flights, together accounting for about 80 per cent of its domestic capacity. Jet Airways’ 30-day advance purchase offer is on till Friday.

On Wednesday, SpiceJet had launched a discount offer on Wednesday. IndiGo, GoAir and Air India followed.

The February-March period is a lean season for travel and, therefore, airlines are reducing fares to fill capacity.

Basic fare, fuel surcharge and common use terminal charge make up a little over 85% of the total fare on the Delhi-Mumbai and Delhi-Bangalore routes. For travel in March, when discounts are available, the percentage of basic fare, fuel surcharge and common user terminal charge is 72-75% on the same routes.

Jet Airways has joined the airfare sale promotions today after Spice Jet, Indigo, Go Air  and Air India announced their flash sales. Unlike last year, airlines have been more disciplined in discounting  advance purchase only. This is the right way to go about such promotions.

“Unlike last year, airlines have been more disciplined this year, discounting advance purchases alone. This is the right way to go about such promotions. We think there is scope for last-minute fares to be higher, while fares for passengers booking in advance should be brought down further. We have seen a very enthusiastic response to the sale, with visitors to the website and ticket-sales increasing on the second day. These promotions are resulting in many people planning impulse holidays, as popular long-haul routes are available for cheap. Currently, the Bangalore-Delhi route is being offered at Rs 3,995 (one-way), while the spot-fare for the same route is more than Rs 11,000,” said Rajesh Magow, co-founder & chief executive (India), MakeMyTrip.

“It’s a limited period discount offer that will help stimulate demand in a lean quarter. It will help generate cash for the airline. The seats on offer are chosen carefully, without compromising flights with high demand. This also helps to widen the narrow flyer-base of the country. So, overall, it’s a good move. The only losers are other airlines, which have to match fares,” says Amber Dubey, partner and head (aerospace and defence), KPMG.