SpiceJet, IndiGo, GoAir likely to cut fares by 8 - 10% next month

Mumbai: Indian Low Cost Carriers (LCC) SpiceJet, IndiGo Airlines and GoAir are likely to slash fares by eight to ten per cent by next month. This follows a possibility being weighed by Kingfisher Airlines, Jet Airways and Air India. According to a report in today’s Economic Times (ET), SpiceJet which has a 10.8 per cent market share has decided to drop fares for advance bookings.
Ajay Singh, Director, SpiceJet confirmed the proposed reduction to ET, but declined to divulge exact fare cuts. Singh said that the fare cut will be ‘substantial’ across sectors, and the announcement will be done shortly. He further stated that after the fare cut, the company’s load factor will bounce back to 65 per cent. Aditya Ghosh, President, Indigo Airlines said, “We have not taken any decision on the price cut as yet. We are monitoring the developments closely.”
Meanwhile, Kingfisher Airlines, Jet Airways and Air India are said to be working on separate plans to reduce airfare by Rs 600 per ticket from January next year. Vijay Mallya, Chairman, Kingfisher Airlines and other top officials will be holding a meeting this Saturday to take a final decision on the fare cut. The airlines are under pressure from the Ministry of Civil Aviation (MoCA), as it wants the airlines to pass on the benefits of reduced jet fuel prices to the customers.
18/12/08 TravelBizMonitor

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Categories: GoAir Dec 2008, Indigo Airlines Dec 2008, SpiceJet Dec 2008