3-day wonder for fliers
No-frills” airline SpiceJet created a sensation with its limited three-day offer of a million one-way, economy class seats for just `2,013, inclusive of airport charges — a bonanza for travellers being even cheaper than train travel from Mumbai to Delhi (1,000 km) by AC first class or even two-tier. In fact, as one aviation expert noted, it was even cheaper, on a per-km basis, than Mumbai auto fares. Travelling by auto costs `15 per km, whereas `2,013 for a 1,000-km journey comes to just `2 per km. And that inclusive of `940 airport charges. So at `2,013, the cost is less than one-fourth of the normal Delhi-Mumbai airfare, which is around `8,500. If the airline managed to see all one million tickets, it would net `201 crores cash in hand. Put in the bank, this would fetch the airline interest of `17.11 crores a year.
While this sounds like a good marketing strategy, experts say in the long run it may not be such a wise strategic move, given ever-rising fuel costs and other charges. But SpiceJet definitely managed to create a buzz, however temporary. The good news for the airline industry overall is that this is extremely unlikely to lead to a price war, given that the aviation sector is trying desperately to balance its books, and had raised fares by 30 per cent this year. That is bad news for passengers looking for a free lunch, unless of course other airlines, and SpiceJet itself, are planning more such three-day wonders.
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