Price wars in skies just got bigger | india | Hindustan Times
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Price wars in skies just got bigger

india Updated: Dec 31, 2008 23:12 IST
Samiran Saha
Samiran Saha
Hindustan Times
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The price wars in the skies have just got bigger, with frills thrown in to woo travellers and rewards to “high-performing” agents.

Jet Airways and its low cost arm JetLite on Wednesday announced a special advanced purchase ( apex) scheme offering fares at less than Rs 3,000 for a one-way economy-class Delhi-Mumbai ticket. “For all purchases made at least 21 days before the flight departure, Jet Airways will offer a basic fare of Rs 250 on all of the airline’s 45 domestic sectors. For JetLite the minimum basic fare is as low as Rs 9,” a company statement said.

The total fares, however, include taxes and levies totalling about Rs 3,000 per ticket.

The offer is valid for bookings made during the month of January. The latest offer comes a day after state-run Air India announced up to 82 per cent reduction in its basic fares on 20 of its important domestic sectors.

Falling fuel costs and decelerating demand for air travel have forced airlines to cut fares. On Wednesday, oil companies reduced aviation turbine fuel (ATF) prices by another 6.8 per cent, making it the eighth straight reduction since September. Jet fuel prices now stand at Rs 30,457.21 per kilolitre (in Delhi), touching the July 2005 levels.

After announcing sharp cut in fares, Air India has offered freebies such as free-tickets, holiday packages, air-conditioners and microwaves to its agents, who give the airline good sales.

It also offered a scheme where executive class passengers would be given a free-ticket for the spouse.