Now, you can fly for Rs 99

Spicejet's introductory offer brings air fares to the ground.

Spicejet, the low-cost carrier promoted by Royal Airways, plans to offer fares as low as Rs 99. The lowest air fare offered at present by any Indian carrier is Rs 500, by Air Deccan.

"It is very much possible that we will offer tickets for Rs 99. When we do it, it will be for the hype. It will be an introductory offer," said Mark S Winders, chief executive officer, Royal Airways. The carrier is expected to start operations by May.

In the long run, the airline will migrate to a model where prices are at least on a par with Air Deccan's offers. Winders said: "The complete pricing strategy is emerging. We are not going after any of the existing carriers. Instead, we want to target the AC II-III train travellers."

The airline plans to adopt dynamic pricing, compared with Air Deccan's fixed prices. Under dynamic pricing, the price of a ticket on a particular flight will depend on the passenger load at the time of booking the ticket.

"The exact price of a ticket will keep changing till the flight takes off," Winders said. However, on average, the cost of a ticket on Spicejet will be about 40-50 per cent cheaper than that of a full-service carrier and about 10 per cent costlier than an AC-II train ticket.

The airline is also planing to offer a few complimentary services on board. "I will charge Rs 50 for a bottle of water only if it can add to the profits of the company. We are currently deciding these issues," Winders said.

Besides, the carrier is also contemplating to offer services like advance seat selection so that passengers can select the seats they want. In the case of Air Deccan, passengers do not have the option to select seats, which are offered on a first-come-first-serve basis.

According to Winders, Spicejet will focus on providing affordable tickets and better customer services. "We do not want to compromise on customer service at any cost. We want to build an airline with a strong customer loyalty," Winders said.

The airline will start its service with five Boeing 747s in the busy metro and the non-metro sectors.

Spice in the air

Spicejet's offer

Fares 40-50 per cent cheaper than that of a full-service carrier

About 10 per cent costlier than an AC-II train ticket

Now, all eyes competition

The lowest air fare offered at present by any Indian carrier is the Rs 500 ticket by Air Deccan