Airlines in tit-for-tat fare war

Airlines, which are competing to attract fliers, are closely watching their rivals’ ticket-pricing strategy, and adjusting their own.

Travel portals have said that they are witnessing adjustment of fares in comparison with rivals, but airlines are denying any such move, stating that the fares are dynamic and not influenced by anyone.

Vistara, the joint venture of Tata Sons and Singapore Airlines, has slashed fares, which are now in sync with fares of other operators. A Delhi-Mumbai ticket for February 21, booked last Friday, cost Rs 5,481 but the same cost only Rs 4,558 on Monday.

A Vistara spokesperson said the airline has not slashed fares. “There may be some seats left and the prices might have come down. The airfares, as you know, are dynamic,” the spokesperson told Deccan Herald.  Interestingly for days, Vistara was selling the Delhi-Mumbai economy ticket for Rs 5,481, while its competitors were last week offering tickets in a range between Rs 4,062 to Rs 4,956. On Monday, the fare was between Rs 4,394 to Rs 4,956 for a February 21 Delhi-Mumbai ticket.

In another instance, a GoAir Delhi-Mumbai ticket for March 10 cost Rs 6,923 on February 9, but the airline later reduced it to Rs 2,942 on Monday as almost all of its rivals were selling tickets between Rs 3,238 and Rs 5,481.

Rivals have now scaled up prices for the same route on the same day with prices ranging between Rs 3,236 and the highest at Rs 6,927. While IndiGo priced its March 10 ticket at Rs 3,238 on February 9, the same ticket cost Rs 6,927 on Monday.

With lean season setting in by next month and reduction in jet fuel prices, fliers are expecting a further slump in airfares. Airlines, however, said they are not going to drastically lower the prices as the fuel price reduction is only 26 per cent, even as international crude prices have already decreased by over 50 per cent.
DH News Service