Jet Airways to unbundle fares next month

The product called Fare Choices will be launched on August 17

Jet Airways is unbundling its fares, to allow customers to opt for paying less in lieu of benefits such as lounge access or bonus miles. The product, Fare Choices, will be launched on August 17.

It will allow customers to choose from eight fare slabs. The higher levels will guarantee bonus miles, lounge access, seat upgrade options, priority check-in and waivers in cancellation and date change fees. All passengers will be entitled to free meals and baggage allowance, irrespective of fare selection. The airline would not comment on pricing.

Colin Neubronner, senior vice-president (sales and marketing), said this would enable the airline to compete effectively with lower cost competitors. “We have tailored a product which suits different customer requirements,” he said, adding they'd drawn on the experience of telecom companies, which offer different plans for different consumers.

Globally, Air Canada, United, American Airlines, Air New Zealand and Etihad have launched similar fare products, allowing customers to choose their best option.

Prasad Kholkute, vice-president (revenue management) at Jet, said most passengers purchased tickets based on the price but some do opt for  product attributes. Fare Choice makes the value proposition better for them.

About 60 per cent of all capacity in the domestic market is from low-cost airlines. IndiGo is the largest airline, with 38 per cent market share, double that of Jet.

Jet had in May launched its first large scale multi-media campaign in nearly a decade. It says it aims to position itself as a carrier offering the best customer experience.