Holiday rush, SpiceJet row push up airfares on Indore-Delhi route

  • HT Correspondent, Hindustan Times, Indore
  • Updated: Dec 20, 2014 18:19 IST

Airfares for Indore-Delhi route have moved up due to Christmas holidays and uncertainty over status of SpiceJet flights.

"After SpiceJet flights were suspended and then cancelled over fuel payment issues, demand for seats in other airlines has increased leading to a rise in spot fares," travel agent Dilip Ramani said.

A look at the airfares for December 20 for Indore-Delhi route on Jet Airways reveals that minimum one-way fare is now Rs 12,500 for bookings made a day in advance. The spot fares are much higher and fluctuate on a daily basis depending on the availability of the seats. The seats in Air India for December 20 for Indore-Delhi route had sold out on Friday.

"The airlines are also looking to offset the losses from discounted airfares during the off season. Intense competition had forced many airlines to offer steep discounts for bookings made months in advance," Ramani said.

In August and September, the airlines were offering special discounts due to off season and increasing competition. The fares then started moving up during Diwali.

SpiceJet, which is struggling to stay afloat, has begun reducing its Boeing 737 fleet, most of which was used on domestic routes. As a result, the airline had cancelled its Indore-Delhi flight until December 17. With flyers reluctant to book seats on SpiceJet, other players are witnessing additional demand, thereby pushing their fares up even more. The result is that fares are up despite more than 20% fall in jet fuel prices from this January to December.

The fares for bookings made days in advance are also higher as compared to last year. The one-way fare for Indore-Delhi for December 24 starts at Rs 5,500, as compared to Rs 4,500 last year. Travel agents expect the spot fares to rise further as Christmas and New Year holiday season approaches.

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