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Low-cost airlines relaunch attractive scheme to lure passengers who opt for AC train travel; the fare was discontinued in 2006 as airlines ran into losses |
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By: |
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Date:
2008-4-28 |
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Place: |
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 | | ILLUSTRATION/SAMEER PAWAR | Airlines are getting desperate. After losing passengers to air-conditioned trains, low-cost airlines have brought back the Rs 99 fare.
That fare had been introduced in 2005 and discontinued the next year. “Airlines had hiked air fares, as they started making
huge losses due to the Rs 99 fare that was introduced to lure train passengers. But then, passengers have started travelling by air-conditioned trains again,” said IndiGo chief executive Bruce Ashby.
This time around, SpiceJet, GoAir, Simply Fly Deccan, want to cash in on the holiday rush.
Ashby, however, clarified that these were promotional fares to stimulate passenger interest. Free tickets to children below 12 are also being offered. “Till October, passengers below 12 years of
age can just pay the tax and surcharge,” said a GoAir official.
“The fare is being reintroduced for additional revenue and also so that aircraft don’t end up flying empty,” said Captain G R Gopinath, who pioneered the low-cost airlines craze with Deccan.
Fuel cost up
Fares have seen a steep rise in the past couple of years. “A ticket costing Rs 500 and
Rs 750 in 2006 and 2007 respectively, now costs Rs 2,000,” said a Federation of Indian Airlines official.
Interestingly, though airlines have lowered fares, they have also imposed another round of fuel surcharge.
“It is be Rs 150 a ticket for routes up to 750 km and Rs 350 a ticket for more than 750 km, starting April 7,” said Javed Ansari, a Juhu-based travel agent.
He added that this would translate into Rs 2,175 for short routes and Rs 2,375 for longer routes on low cost airlines with Rs 99 as the basic airfare. |
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