Ia Takes Rate War To South

The slugfest among the domestic airlines to attract lean season traffic has intensified with Indian Airlines planning to introduce fare cuts in some more sectors. The airlines may reduce fares by 3 to 10 per cent in the southern sector in two-three weeks.

Company sources told Business Standard fares were likely to be reduced on the Chennai-Thiruvananthapuram and Bangalore-Mangalore routes, among others.

The fare war started on Monday with Indian Airlines announcing a 3-15 per cent reduction in fares for all classes on seven routes in the western sector. Jet Airways followed suit and reduced fares by Rs 635 on the Mumbai-Nagpur route and by Rs 525 on the Mumbai-Goa route for economy class yesterday.

 

Air Sahara officials had said the airlines would not reduce fares. But with Indian Airlines and Jet Airways reducing fares, Air Sahara has been reviewing the situation and has asked its regional sectors to give their recommendations by tomorrow. It is likely to follow Indian Airlines and Jet Airways.

The fare cuts come as part of Indian Airlines' flexifare policy which it is using to buoy sales in the lean July-August season. Apart from the western sector, Indian Airlines has announced discounts on the Delh-Khajuraho, Delhi-Srinagar and Delhi-Jammu routes. Indian Airlines regional sectors would be allowed to reduce fares up to 15 per cent, said an official.

Jet Airways has also rationalised its flight schedule by adding some flights and pulling out of some sectors. Jet Airways has started its second daily flights on the Delhi-Lucknow-Delhi and Delhi-Indore-Delhi routes. The Delhi-Indore-Delhi flight will start on July 4. It has also introduced daily flights on the Hyderabad-Vishakapatnam route.

It has suspended operations on the Hyderabad-Tirupati-Hydearbad route because of the reduced demands. The Delhi-Jaipur-Delhi evening flight has been suspended, while the Delhi-Jodhpur flight will be withdrawn from July 4.