GoAir joins low fare fight with IndiGo and SpiceJet

The Mint is reporting that GoAir recently started offering uniform fares, inclusive of surcharges and other taxes, for purchases made 21 days in advance.

For short sectors, defined as less than 750 kms travel distance, the airline will charge Rs 1,700 a ticket and Rs 2,700 for distances greater than 750 kms. According to the company statement, in effect a Mumbai-Delhi ticket bought 21 days in advance will be for Rs 2,700 instead of the base fare of at least Rs 1,000 plus Rs 2,925 of surcharges and airport fees.

GoAir’s new offer is in reaction to the introduction of Rs one fare by IndiGo on certain routes and SpiceJet Ltd.’s Rs 99 base fare for tickets booked at least 21 days before travel.

The quarter ended December 31, 2008 witnessed an 18 per cent decline in domestic passenger growth, and has prompted all major airline groups in India to resort to price cuts in order to stimulate passenger demand.

Jet Airways, and its low cost subsidiary JetLite, were one of the early adopters of the 21 day advance fares also called APEX fares. Jet Airways also recently offered Rs 250 base ticket fares, while JetLite started Rs nine base fare for travel during this month. It has similar schemes for its Business-Class too. Jet Airways is expecting a 15 per cent increase in passenger traffic.

Jet's alliance partner Kingfisher Airlines also slashed fares between 21 per cent and 65 per cent on various routes earlier this month while the state-owned and operated National Aviation Company of India Ltd. (NACIL), which runs Air India, also announced an average reduction of 52 per cent in basic fares for domestic travel on 20 major routes.