Domestic airlines are trying to woo back passengers with cheap tickets once again

Ever since domestic airlines raised their basic fares by as much as 40 per cent in June (over April) to combat rising crude oil prices and to stem their mounting losses, domestic passengers have been woeful about the end of as-low-as-Re 1 air tickets (excluding taxes). Well, now, there seems to be some hope for passengers once again.

Hit by the around 25 per cent fall in passenger numbers in the last two months, domestic airlines are trying to win back passengers with attractive fares. For now, this is confined to the Mumbai-Delhi-Mumbai sector but it could spread, at least till passenger volumes pick up again by October.

In fact, on August 14, several airlines cut their basic Mumbai-Delhi fare from around Rs 2,000 earlier to Re 1. So Spice Jet launched Independence Day Re 1 fares, which are valid till September 30, depending on availability. With fuel surcharge and taxes of Rs 3,375, this means a total fare of Rs 3,376. The airline has five direct flights on the sector daily. IndiGo too has launched Re 1 fares on its three flights on the Mumbai-Delhi sector till September 30. And according to travel industry sources, there are a reasonable number of such Re 1 tickets available on each flight.

“It all began with GoAir, which persistently kept discounting fares on this sector while all the other carriers had unofficially agreed not to breach the Rs 2,000 fare mark. But on August 14, almost all airlines cut their basic fares to zero or Re 1. This is a panic move where the other airlines are either trying to hurt GoAir or ensuring they retain their share of the market,” says Mohit Srivastava, head, online sales, makemytrip.com. The point is airlines need to increase their passenger load factors to ensure that they cover their variable — especially fuel — costs at least to sustain operations. “These are short-term strategic moves to push sales,” he says.

Obviously, passengers are the winners in this situation. Also, they can benefit from the new Apex fares that airlines are introducing. Take Jet Airways, which has just launched 14-day and 21-day fares on several domestic sectors, which are 30 per cent to 40 per cent cheaper than its regular basic fares. If you book 21 days in advance, you can get a Delhi-Calcutta basic fare of Rs 2,000 on Jet (the regular fare being Rs 3,300). Including taxes, this comes to around Rs 5,500. Jet’s 14-day Delhi-Calcutta Apex fare is Rs 2,500 (excluding taxes).

Spicejet too has introduced discounted 14-day and 21-day fares on some sectors. Its 14-day basic fare on the Mumbai-Calcutta sector is Rs 1,500 (against Rs 2,000 earlier), which amounts to a total fare of Rs 4,875 with taxes. And its 21-day basic fare from Mumbai to Calcutta is Rs 1,000.

Some airlines are even offering deals on the international sector, especially where business travel is down. Jet Airways, has a zero fare offer on business class from Mumbai to Bangkok, valid till September. You only pay taxes of Rs 22,900 as compared to a regular business class ticket (including taxes) of around Rs 71,000. Of course, you can fly cheaper on economy at around Rs 15,000.