Friday, January 23, 2015

Air fare war may continue on low crude oil prices

The fare war in the Indian aviation sector has well and truly begun. Whether it is due to the lean period or the sharp drop in aviation fuel prices, airlines across the board are slugging out to offer lowest fares. Even full-service carriers such as Jet Airways and Air India, and even the newly launched Vistara, are luring customers with fares comparable to low-cost carriers or LCCs.

Take Jet Airways, for instance. The Naresh Goyal-promoted airline is offering tickets for Rs 4,424 for a Delhi-Mumbai flight one month from today. The fares are available at nine different time slots across the entire day. State carrier Air India's lowest fare for the same day is Rs 4,956 while Vistara's is Rs 5,481 per ticket.

Economy fares offered by LCCs such as GoAir and SpiceJet are in the same range. GoAir's economy fare varies from Rs 3,339 to Rs 6,084 on Febraury 23 for Delhi to Mumbai, and SpiceJet's economy fares are Rs 3,343 and Rs 5,559 on that day. LCC market leader IndiGo's range varies from Rs 3,051 to Rs 5,428 per ticket.
23/01/15 Manu Kaushik/Business Today
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