Monday, January 26, 2009

Fly Mumbai-Delhi at AC-3 train fare now

New Delhi: The plummeting number of flyers has forced airlines to enter into a fare war. Both low-cost and full-fledged carriers are resorting to steep price cuts of as much as 40 per cent compared with the peak fares last year. Sensing turbulent times ahead, even full-fledged airlines such as Air-India and Jet Airways are announcing special schemes.
In fact, some carriers such as the Wadia-promoted GoAir, a low-cost airline, offers tickets for Rs 1,500, inclusive of all taxes and fees, across sectors if tickets are booked now for travel from February 14 to June end. A third-AC Mumbai-Delhi Rajdhani costs Rs 1,495, almost half the price offered by full service carriers, and at least cheaper by Rs 700-800 when compared to low-cost carriers.
Airlines claim that the recent price-war and slew of promotional offers are to stimulate demand, especially in traditionally lean months of February and March. "We need sustained efforts to attract passengers in this market. People are willing to travel if they are offered the right fares. The recent fare cuts are designed to stimulate demand," said Spicejet Chief Operating Officer Samyukt Sridharan said.
While low-cost fares have dropped the basic fares to almost nil, charging at most Re 1, full service carriers like Jet Airways introduced special fares for flights booked on the Republic Day weekend. The Mumbai-Delhi Jet Airways flight under the scheme costs around Rs 3,183. Not to be left behind and woo its repeat customers, state carrier Air India has slashed prices last week on its 'Super Saver Coupon (economy class)' valid on four sectors for three months by over 61 per cent. The coupons targeting the corporate sector cost Rs 15,400 now as against Rs 37,400 earlier.
However, adding a note of caution, Sridharan said that it might not be possible to sustain these low fares for a long term. In fact, even a marginal increase of around Rs 1,000 per kilo litre in the fuel prices after the January 16 revision by Oil marketing companies has had little impact on airlines. They continue to offer special fares.
26/01/09 Smita Aggarwa/Indian Express
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