SpiceJet drops fares on select flights

50% discount of certain flights with poor loads two-three days prior to travel date

SpiceJet is selling seats at discounts of up to 50 per cent on select flights (with poor loads), two-three days before travel dates. Typically, airlines offer discounts on advance bookings and seats have to booked 30-60 days in advance.

Seats on one of the airline’s late-evening Mumbai-Chennai flights on Wednesday were up for sale for about Rs 4,500; the second-lowest fare on offer, by another airline, was Rs 7,300. Other airlines tickets on the same route were priced at about Rs 8,600. Similarly, seats on two of SpiceJet’s Mumbai-Delhi flights were priced at about Rs 4,500; the second-lowest fare on the route was about Rs  7,500.

On Tuesday the Sun Group-promoted low-cost airline announced another scheme, offering a million Rs 999 tickets on its network, for travel between January 2015 and October 2015. The airline said the discount scheme would run till July, adding ticket prices excluded taxies and levies. Daily, the airline sells about 40,000 seats.

FLY HIGH AT CHEAP RATES

• Rs 4,500: Price at which the airline sold tickets on Wednesday
• Rs 8,600 : Price at which other airlines offered tickets on the same route
• The airline said the discount scheme would run till July

Indian airlines have been struggling due to high operating costs and low passenger demand. Through the past few months, airlines, led by SpiceJet, launched a series of discount offers. But these haven’t raised occupancy. According to a media report, SpiceJet has sought the aviation ministry’s approval to offer “restricted non-changeable, non-refundable” fares. These would be at least half spot or last-minute fares. Also, these fares won’t be for advance purchase alone, but “saleable at any time”. SpiceJet did not respond to an emailed query.

“The new sale, announced by SpiceJet today at Rs 999 plus taxes across sectors for travel between January and October 2015, is aimed at incentivising advance bookings and should have the positive effect of stimulating the air passenger market in the coming year. Competition has intensified in the air market, with the entry of new players. This announcement by SpiceJet targets shoring up bookings in advance so as to sustain market share in the face of increased competition. We expect other airlines following suit. We are already seeing a huge surge in our bookings,” said Yatra.com president Sharat Dhall.