Airlines appear to be slashing prices with the same frequency as that of retailers. We've had three sales by airlines in the past one month. But how similar are they to discounts by modern stores? Apparel brands, for example, typically tempt shoppers with "up to 50% off" signs, but showcase far more costlier clothes.
The offer by SpiceJet, the low-cost airline that launched the price cut on each of the three occasions this year, forcing competitors to follow, was no different. At first glance, the airline's "Super Summer Sale" between February 24 and 26 and extended by another day, which offered up to 75% off the base fare plus fuel surcharge for travel between April 1 and June 30, was enticing.
But the catch was not just the "up to" — the price cuts were also relative to last-minute fares. Frequent flyers would tell you last-minute fares pinch. A Delhi-Mumbai flight ticket that normally costs Rs 6,000-8,000 could ratchet up to nearly Rs 15,000 if the purchase was delayed until the eleventh hour. By stacking up slashed fares against bumped-up prices, SpiceJet was simply luring customers.
Read News in full 02/03/14 Binoy Prabhakar/Economic Times
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