Airlines continue to launch aggressive discount schemes

Airlines continue to launch aggressive discount schemesCivil aviation regulator DGCA might have ordered SpiceJet to withdraw its special Re 1 scheme, but that failed to discourage rivals from announcing discount schemes of their own.

GoAir and IndiGo have announced special schemes that offer discounts of up to 30 per cent to 40 per cent on advance purchases of tickets for travel between July and March 2015.

Air India too has launched its Monsoon Bonanza scheme, for the travel before September 2014. To avail the discounts, tickets must be booked during April 3 to April 5.

The price war was triggered by SpiceJet, which launched discount scheme offering tickets at prices as low as Re 1 (statutory taxes and fees extra). The aviation regulator termed the scheme as 'predatory' and 'malpractice', and ordered SpiceJet to withdraw its special scheme.

However, the carrier was allowed to continue its other discounted schemes that offer tickets at prices of around Rs 1,499 along with taxes.

In response to some reports that spiceJet continued to offer the Re 1 airfare scheme despite DGCA's order, the airline said, "The lowest sale fare still available as part of the sale is Rs 1,499 inclusive of fuel surcharge, but excluding taxes and fees; adding taxes and fees of Rs 937, this fare comes to Rs 2,436 all-in."

July to September period is usually a lean period for airline industry, which force carriers cut prices to attract travelers.