| In a move that is likely to kick off another round of fare wars, Indian Airlines on Tuesday announced a scheme, which will allow passengers to fly on most routes for the tarmac-touching price of Rs 4,000. |
| This is about 40 per cent cheaper than the normal fare between Delhi and Mumbai, the country's busiest sector. |
| As per the Bumper Super Saver Scheme, for a cool Rs 65,000 you get 16 flight coupons, which are valid for a year from the date of purchase. |
| Travel industry analysts said this move by Indian Airlines was targeted at the corporate travel segment, which accounted for about 70 per cent of the passenger traffic in the country. |
| The new scheme could lead to a dogfight in the aviation sector, with private domestic carriers likely to respond with cut prices. |
| Sources said private carriers would study the market reaction before they announced similar schemes. "This scheme has just been announced. Let us see how it develops," said an Air Sahara executive. |
| The coupons can be used on any domestic route, barring four sectors where two coupons will be required for a single flight. They are, Delhi-Kochi, Delhi-Kozhikode, Delhi-Thiruvananthapuram and Delhi-Coimbatore. |
| "We expect this scheme to be a great success like our earlier schemes," said an Indian Airlines executive. |
| However, the coupons can be used only if seats are available. So do not expect a confirmed seat every time you travel. "Passengers can exchange these coupons for a ticket on a particular route on a particular day. But the ticket will be given if there is availability," said the executive. |
| The last major fare war took place in 2002 when Indian Airlines launched its apex fare scheme. The private airlines followed, leading to a reduction in airfares to the tune of 35 per cent across sectors. |
Explore Business Standard