SpiceJet to launch regional operations, trigger price war

Mumbai: Yet another price war is set to erupt in the Indian skies as low-cost airline SpiceJet launches its regional operations from September 21 with fares at least 10-30% lower than the three big boys of Indian aviation - Jet Airways, Kingfisher Airlines, and Air India - who are also trying to establish themselves on regional routes.
SpiceJet, with Hyderabad as a base for its regional operations, plans to connect Tier-II and -III cities to nearest metros through its regional service. The first flight will be from Hyderabad to Tirupati and will operate twice daily.
"In the first week of our bookings we are selling tickets which are 10-30% cheaper than Kingfisher Airlines and Jet Airways. In the next week we are selling about 25% cheaper," Samyukth Sridharan, chief commercial officer, SpiceJet, told ET. SpiceJet is targeting tickets that are at least 10% lower than what the market if offering.
On an average the fares for flights operating out of Hyderabad are priced at 2,499 and from other cities the fares will be 1,999. The airline has priced its Hyderabad-Tirupati flights 300 lower than Kingfisher and 1,200 lower than Jet Airways.
26/08/11 Manisha Singhal/Economic Times

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Categories: spicejet Aug 2011