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IndiGo, GoAir, Air India join airfare war

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Two days after SpiceJet came up with a Re 1 fare scheme, other domestic carriers jumped on the discounted fares bandwagon on Thursday.

Interestingly, SpiceJet was asked to withdraw its Re 1 scheme by the aviation sector regulator, Director General of Civil Aviation (DGCA).

IndiGo and GoAir on Thursday announced a discount of around 30-40% on advance purchases for travel between July this year to March 2015. The airlines almost matched the discounted fare scheme, offered by SpiceJet.

Air India, too, announced its Monsoon Bonanza scheme, for the travel before September this year, for which tickets have to be booked during April 3-5. IndiGo has not indicated any number of days for the booking of tickets.

SpiceJet on Tuesday had to withdraw its Re 1 scheme, after DGCA objected to the offer calling it 'predatory' and 'malpractice'.

However, it allowed its other discounted offers of tickets at Rs 1,499 along with taxes.

"As anticipated IndiGo has dropped their prices post SpiceJet's sale announcement for the period of July to September. With India being a price-elastic aviation market, these discounts are being used by airlines to create a market for themselves and to attract travellers. The advance discount fares continue to stimulate the market and offer lucrative opportunities for those who are willing to book early," said Sharat Dhall, president, Yatra.com, an online travel agency.

Responding to reports on continuation of Re 1 offer by SpiceJet despite the mandate by DGCA, the airline in a statement said, "The lowest sale fare still available as part of the sale is Rs 1,499 inclusive of fuel surcharge, but excluding taxes and fees; adding taxes and fees of Rs 937, this fare comes to Rs 2,436 all-in."

"In an effort to make pricing simpler and more transparent for the benefit of customers, SpiceJet is currently in the process of removing the 'fuel surcharge' add-on from all of its pricing, and consolidating it as part of the base fare."

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