SpiceJet cuts fares again

October 21st, 2008 - 8:05 pm ICT by IANS  

New Delhi, Oct 21 (IANS) Low-cost carrier SpiceJet announced a fresh round of fare cut Tuesday even as airlines continue to make losses in an adverse economic environment. The airline announced fares starting with Rs.99 across its network and said the offer will be available for all bookings till March 2009. Earlier Oct 15, SpiceJet slashed fares up to 15 percent on tickets purchased in advance, besides withdrawing congestion charges.

Indian carriers currently charge Rs.150 per ticket as congestion charge against additional flying time owing to traffic at airports.

“We want to encourage people to continue to fly in these hard times,” SpiceJet chief commercial officer Samyukth Sridharan said.

The new fares will be applicable on advanced purchase. “We have removed the congestion charge completely. With improved infrastructure available, we do not face this problem any more. So we want to pass on the benefit to the customers,” he added.

The move comes amid fears that Jet Airways and Kingfisher Airlines would increase fares, following their strategic alliance announced Oct 13.

SpiceJet’s market share in the third quarter of 2008 was 8.3 percent and it carried 710,000 passengers during the period.

The airlines will also introduce special fares of Rs.3,225 (inclusive of taxes) for the Mumbai-Delhi sector to aid business traffic. “This will certainly help connect more people between our capital and the financial hub of India,” he added.

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