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SpiceJet's Rs 511 Offer Triggers Price War, IndiGo Launches Counter Sale

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SpiceJet's Rs 511 Offer Triggers Price War, IndiGo Launches Counter Sale

IndiGo has priced tickets from Rs 806 under the discount offer


Highlights

  1. IndiGo has priced tickets from all-inclusive Rs 806
  2. June to September is typically a lean season for air travel
  3. Airlines offer discounts to increase load factor
SpiceJet's Rs 511 offer has triggered an airfare war, forcing India's biggest carrier IndiGo to slash airfares on advance bookings. Gurgaon-based IndiGo is offering tickets at an all-inclusive fare of Rs 806 on certain domestic routes. 

IndiGo's offer, launched hours after SpiceJet announced its Rs 511-offer, is open till May 19 and is applicable on travel between July 4 and September 30.

IndiGo is offering tickets from Srinagar to Chandigarh and Srinagar to Jammu routes at Rs 806. Delhi-Mumbai and Delhi-Kolkata fares start from Rs 2,668 while tickets for Delhi to Bengaluru from Rs 3,408.

A check on IndiGo's website showed that tickets for Delhi-Mumbai route are priced at around Rs 4,705 for travel next week.  IndiGo however did not disclose number of seats on offer under this discount scheme. 

Under SpiceJet's Rs 511 offer, passengers will need to pay additional taxes on tickets purchased at base price of Rs 511. SpiceJet's Rs 511-offer also closes on May 19 and is applicable on travel between June 15, 2016 and September 30, 2016.

A search on SpiceJet's website showed that Delhi-Mumbai one-way economy ticket, inclusive of all charges, was going for around Rs 4,800 for next week, against Rs 3,700 in June and Rs 2,700 in July.

Airlines typically announce promotional schemes for travel during the June to September period, considered a lean season in travel industry. Discount offers help airlines increase load factors during that period. 

SpiceJet's sale is also applicable on some overseas routes, with tickets from Rs 2,111 (excluding statutory taxes and fees.)


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