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SpiceJet announces ticket sale for Tier II cities; price starts at Rs 1,899

Despite discounting, SpiceJet’s passenger numbers have not improved.

New Delhi | Published: May 15, 2014 9:17:01 pm

By FE Bureau

Low cost carrier SpiceJet launches has launched yet another discount fare for direct and connecting flights to North and eastern cities.

The three day offer, starting Thursday, will offer all inclusive tickets at as low as Rs 1,899 one way on direct as well as connecting flights, which will be valid for travel between July 1 and September 30.

The scheme provides various options to book tickets from the cities of Agartala, Bagdogra, Chandigarh, Dehradun, Dharamsala, Guwahati, Jaipur, Jammu, Lucknow, Srinagar, Udaipur, Varanasi on direct, via and connecting flights, said a release by the airline.

“Based on the overwhelming response to the last campaign, we are glad to offer discounted fare offer as this proven to stimulate potential flyers to prefer air travel instead of any other mode of travel plus travel more often,” said Mr. Kaneswaran Avili, Chief Commercial Officer, SpiceJet Ltd.

Maran-owned SpiceJet has shelled out several discounts, which eventually led to a price wars among airlines, since the beginning of the year. The airline had earlier defended its stand to roll out discounts on the ground that the offers have ‘helped revenue performance and as well helped stimulate the travel industry and wider economy as a whole.’

“These promotions have been launched by an expert team that is well-versed in LCC revenue and capacity management, and after analyzing the current consumer purchasing profiles and behaviors. These highly fenced and targeted are the best practices of all successful low cost airlines in the world. India is no different in terms of how the market reacts to price stimulation,” the airline’s Chief Operating Officer (COO) Sanjiv Kapoor had earlier said in a statement.

However, the demand for seats generated by rolling out such discounts, over ten since January 1, may not offer any respite to Spice Jet from posting large annual loss for the previous fiscal.

Aviation consultancy firm Centre for Asia Pacific Aviation (CAPA) had earlier, in a February report, predicted that three Indian carriers – Air India, SpiceJet and Jet Airways – would post combined losses in excess of $1.2 billion (Rs 7,430 crore) in financial year 2014 (FY14), with Jet Airways and SpiceJet likely to report record full-year losses.

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