AirAsia ties up with Tatas to start airline

in IndiaGiving shape to the dream of Tata Group to make a comeback in the airline business, Malaysia’s leading no frills carrier AirAsia has sought the approval of the Indian Government to join hands with the Tata Group to enter the aviation sector in the country.

This would be the first investment in the aviation sector by any foreign airline after the Government last year hiked the foreign direct investment (FDI) limit from 26 per cent to 49 per cent.
In a statement issued here on Wednesday, AirAsia said it had applied to Foreign Investment Promotion Board (FIPB) to take 49 per cent in a venture with Tata Sons Ltd and Arun Bhatia's Telestra Tradeplace Pvt Ltd.
If the proposal is approved by the FIPB, the airline operators would then approach the Director General of Civil Aviation (DGCA) for a permit to start operations.

Tata Sons will hold 30 per cent in the joint venture but will not have any operating role in the airline. AirAsia will hold 49 per cent stake in the JV and Hindustan Aviation of the Bhatias will hold 21 per cent.

This move also marks the return of Tata Group to the aviation sector. State-owned Air India had grown out of Tata Airlines, which began flights in 1932. It was in the mid-nineties that Tata Group had joined hands with Singapore Airlines to bid for a stake in Air India but it could never take off.

The statement by AirAsia said the proposed joint venture will operate from Chennai and will focus on providing domestic connectivity to Tier-II and Tier-III cities. As per current rules, a carrier must complete five years of domestic operations before becoming eligible for starting overseas flights. AirAsia, through its operations based in Thailand and Malaysia, flies to Chennai, Bangalore, Kochi, Tiruchirappalli and Kolkata in addition to 20 countries across Asia.

The three parties signed the partnership agreement and submitted the proposal to the Indian government earlier this week. ``We have carefully evaluated developments in India over the past few years and strongly believe that the current environment is perfect to introduce AirAsia's low fares which stimulate travel and grow the market,’’ AirAsia founder and group chief executive Tony Fernandes said in the statement.

The Tata Group holds nearly 6 per cent equity in SpiceJet, but has maintained that it was only a financial investor in the budget carrier. Telestra Tradeplace is an investment holding company of Arun Bhatia and one of its group companies is Hindustan Aerosystems Pvt Ltd which manufactures and supplies precision components for the aerospace industry.

The statement said AirAsia is confident that it can replicate its unprecedented success across Malaysia, Thailand, Indonesia and other joint ventures. In particular AirAsia believes its success in affording people to fly through superior operational performance by emphasising a focused and disciplined cost structure will tremendously benefit the Indian consumer. An email sent to Tata Group seeking its comments on the issue evoked no response.
http://www.thehindu.com/business/Industry/airasia-ties-up-with-tatas-to-start-airline-in-india/article4435684.ece
 

Following others, Air India may join low-fare bandwagon

With major carriers slashing airfares following Jet Airways’ offering of 20 lakh seats at Rs. 2,250 for travel till the year-end, Air India on Wednesday said it might join the competition to bag more air travellers.
However, the government did not expect the low fares to breach the lowest fare bucket given by the airlines to aviation regulator Directorate General of Civil Aviation.
“We are watching the situation. Air India shall respond to this depending on how the situation develops,” Air India Chairman and Managing Director Rohit Nandan said here.
Budget carriers SpiceJet, GoAir and IndiGo jumped into the fray and began offering similar or lower discounts on select routes, after Jet Airways on Tuesday announced slashing domestic airfares on two million seats by more than half for travel through the year.
Asked whether these latest low fares would lead to a fare war and predatory pricing that could hit the bottomlines of the already troubled airlines, Civil Aviation Minister Ajit Singh said, “We don’t regulate air fares. We are setting up a cell to monitor the fares, but monitoring is different from regulating the fares.”
Commenting on the Jet move, industry sources, refusing to be identified, said “this move could be a smokescreen to divert attention from the Jet-Etihad deal which has developed some problems. At the same time, the decision (to slash airfares) could also be intended to shore up share prices which have dipped somewhat in the past few days.”
Through this measure, they said Jet was seeking to attract passengers away from its rivals and raise an immediate cash buffer of about Rs. 400 crore.
Asked whether the DGCA would warn airlines against indulging in predatory pricing of air tickets as it had done when Kalanithi Maran-owned SpiceJet had offered 10 lakh seats at Rs. 2,013 for a limited period, the Minister merely said the fares would not be regulated and made more transparent.
After the SpiceJet move to slash fares last month, the aviation regulator had urged other airlines not to follow suit as such a practice could be harmful to their financial bottomline that was already in trouble.
The industry sources also said the Jet offer of 20 lakh seats at low prices for travel till December 31 may not be bought entirely as people don’t plan way into the future.
This had also happened with SpiceJet which could sell only about 40 per cent of the 10 lakh seats it had offered, they claimed and added that the current fare war could last only till February 24 as long as Jet offer lasts.
The industry sources said the high airfares throughout last year, caused primarily by the grounding of Kingfisher Airlines, had led a substantial chunk of passengers to opt out of air travel.
This had led to negative growth in traffic for the first time since 2009. But the recent low fare offers by the airlines could lead to attracting these air travellers back to flying.
The sources said the dip in fares would also help airlines to fill in the extra capacity they have introduced by getting new planes. — PT
http://www.thehindu.com/todays-paper/tp-national/following-others-air-india-may-join-lowfare-bandwagon/article4437587.ece

for passengers Flying is suddenly cheap as airlines fight

Mumbai: Theres some respite in the offing if you are planning to fly this holiday season.Fares crashed on Tuesday as airlines rolled out never-before offers to lure passengers and fill empty seats.Jet Airways kicked off the price war with a six-day sale of 20 lakh seats over 450 flights across 57 domestic destinations.Go Air,IndiGo and Spice Jet followed suit with unannounced cuts.
Under the offer,a Rs 8,000 one-way ticket from Mumbai to Delhi would cost just Rs 2,850.Similar discounts on other sectors are a welcome relief for passengers who have seen fares soar for two years.
The offers,at the lowest possible base fare of Re 1,have been sweetened even more this year.Unlike in the past,passengers can now book low offers up to December 31.Till last year,such offers were available up to,say,March 31 when the lean season ended,or at the most till July.
Sudheer Raghavan,chief commercial officer of Jet Airways,said the offer would allow passesngers to plan and schedule their travel much in advance,especially during the holiday season,while benefiting from the special fares.
The Jet Airways offer comes in four slabs based on distance.For instance,the fare from Delhi to Jammu,Srinagar and Varanasi would be Rs 2,250;Rs 2,850 to Ahmedabad,Patna or Raipur;Rs 3,300 to Bengaluru,Kolkata,Hyderabad,Ranchi or Pune;and Rs 3,800 to Chennai,Bengaluru or Guwahati.
 Tatas plan return flight with AirAsia on boardTata Group, the pioneer of commercial air travel in India, is set to re-enter the country's aviation sector in partnership with Malaysia's AirAsia, Asia's biggest budget carrier, and Telestra Tradeplace.
 AirAsia said on Wednesday it is seeking government approval to establish a joint venture with the two companies. Tatas Sons will be the minority investor with a 30 per cent stake and no operational role and Telestra Tradeplace will hold a 21 per cent stake while the Malaysian airline will have operational control with a 49 per cent stake. The Tatas will be represented by two non-executive directors on the airline's board.
 The carrier expects to begin operations by the fourth quarter of the current year and will operate in tier 2 and tier 3 cities, and be based on the low-cost model.
 "We have carefully evaluated developments in India over the last few years and we strongly believe that the current environment is perfect to introduce our low fares," AirAsia chief executive Tony Fernandes said in a statement.
 The venture plans to operate from Chennai.
 "Air Asia flies to the south of India. Naturally, we know south India well. We have to wait for the necessary nod from the Indian government," Mr Fernandes said in a conference call.
 "The Tata-AirAsia deal is in line with our estimate that the policy change will lead to equity deals in 2-3 existing airlines and 1-2 fresh startups. This will enhance competition, expand spread of air connectivity to tier 3-4 cities and bring down airfares for the Indian passenger," said global consultancy KPMG in a note.
 "We may also see some consolidation in line with what's happening in the US and EU since clearly, India - with its low flyer-base, regulatory challenges and high cost structure - cannot afford more than four strong national airlines," the consultancy added.
 AirAsia's planned entry into the Indian aviation space spells trouble for current operators like SpiceJet, global investment bank JPMorgan has said.
 "After Air Asia it could be challenging to sustain higher yields and entry of a new player could put pressure on pricing," JPMorgan said in a report.
 Budget carrier SpiceJet, India's number 4 operator by market share, may be the biggest casualty as competition increases. That's because SpiceJet has major presence in Chennai and tier II/III cities. AirAsia India will also be based in Chennai and will be serving smaller cities, adding to pressure in an already competitive market.
 SpiceJet shares were down over 3.5 per cent as of 09.40 a.m. on the BSE. The stock underperformed other aviation stocks. Jet shares were down 1.1 per cent, while Kingfisher Airlines shares were up by their daily limit of 5 per cent for the fourth day in a row.
 Near-term investors' reaction to this deal could be mixed or on the negative side, according to JPMorgan.
 In 1932, Tata Sons operated its first flight with J.R.D. Tata, considered the father of civil aviation in India and founder of Air India, taking off from Karachi in a tiny, light single-engine de Havilland Puss Moth on his flight to Mumbai via Ahmedabad.
 The government nationalized Air India in the 1950s.
 In the mid-1990s, the Tatas floated a proposal to tie up with Singapore International Airlines for a domestic carrier in India but the proposal fell through.
 (Also read: The opportunity that Ratan Tata missed)
 Yesterday's announcement comes after the Malaysian carrier denied last year it was bidding for a stake in SpiceJet.
 India's aviation industry, which has seen continued losses due to high operating costs and regulatory uncertainty, was opened to foreign investors in September last year. Foreign carriers are now able to purchase up to 49 per cent of local airlines.
 No foreign airline has bought a stake in a local carrier since India relaxed investment rules. The UAE's Etihad Airways is in talks to buy a stake in Jet Airways, but no agreement has been reached. Sources previously said it makes more sense for foreign carriers to start an airline with a local partner so they don't have to assume the debt of an existing Indian airline.
 AirAsia presently flies to four south Indian cities and Kolkata in addition to 20 countries across Asia and has indicated it plans to slow its overall expansion elsewhere.
 AirAsia X, the long-haul carrier found by Fernandes, last year pulled out of India due to poor demand and profitability.
 India's two biggest cities, Mumbai and Delhi, were taken off the AirAsia network last year due to a failure to access local distribution lines, according to market researcher the Centre for Aviation (CAPA).
 "Securing the right local partner could resolve many of the challenges AirAsia has faced in serving India from its home markets," CAPA said in a report.
 http://profit.ndtv.com/news/corporates/article-tatas-plan-return-flight-with-airasia-on-board-318286

AI may join low fare bandwagonState

run carrier Air India is “waiting and watching” before it decides to get into the fare war initiated by low-cost carriers including SpiceJet, IndiGo and legacy carrier Jet Airways.
Asked whether these latest low fares would lead to a fare war and predatory pricing that could hit the bottomlines of the already troubled airlines, Civil Aviation Minister Ajit Singh said, “We don’t regulate air fares. We are setting up a cell to monitor the fares but monitoring is different from regulating the fares.”
“We are watching the situation. Air India shall respond to this depending on how the situation develops,” Air India Chairman and Managing Director Rohit Nandan said here on Wednesday.
Market sources claim that Air India can join the fray but it has to first consolidate its position as its finances are weak as of now.
However, with major carriers slashing airfares following Jet Airways offering 20 lakh seats at `2,250 for travel till the year-end, and other airlines following suit, Air India could also look at offering a sizeable number of seats at a discounted rate to attract more passengers.
With aviation regulator keeping a close watch on predatory pricing, it is unlikely that the airlines in India would breach the lowest fare bucket.
 Commenting on the Jet Airway’s move, industry sources said,“This move could be a smokescreen to divert attention from the Jet-Etihad deal that reportedly has run into some problems.”
“At the same time the decision to slash airfares could also be intended to shore up share prices that have dipped somewhat in the past few days,” sources felt.
“Through this measure,” they saidm “Jet was seeking to attract passengers away from its rivals and raise an immediate cash buffer of about `400 crore.”
COMPENSATION FOR DREAMLINERS
Speaking about Air India being compensated for the defective ion-lithium batteries that led to the grounding of Boeing 787 Dreamliners,  Ajit Singh said, “There will be some compensation. ...Let us wait a while.”
Regarding the compensation, Nandan said, “We have an understanding that we will be compensated. We are already operating the Boeing 777s on these routes earlier by operated by Dreamliners.” http://newindianexpress.com/business/news/article1472655.ece

Air India optimistic of posting cash profits this fiscal

: CMDThe state-owned Air India could make a cash profit this fiscal, airline’s Chairman and Managing Director Rohit Nandan said on Wednesday. If it happens, it will be the first time since 2007, he added.

Positive outlook
“Despite the grounding of the Boeing 787 Dreamliners since January and a two-month strike by pilots last year, we expect to be EBIDTA positive (Earning Before Interest Depreciation Tax and Amortisation). We hope to declare a net profit before 2018,” Nandan said.

Between April and January this fiscal, Air India’s revenue from passengers increased 8.3 per cent, load factor (number of occupied seats on an aircraft) increased to 71.8 per cent from 68.5 per cent, yield (revenue per passenger per km) was up 19.2 per cent and number of passengers carried was higher by 3.4 per cent, officials said.

Boeing compensation
On whether Air India was eligible for compensation from Boeing for the recent grounding of Dreamliner aircraft, the airline chief said, “We have the understanding that we will be compensated.”
He, however, declined to give details of the financial loss incurred by the airline due to the grounding of the six Boeing 787. When the aircraft was in operation, it earned a revenue of Rs 2 crore a day for the airline.

Air India grounded its six Boeing 787 on January 17, after the Directorate General of Civil Aviation received a communication from the US watchdog, Federal Aviation Administration, pointing to problems with the battery on the aircraft.
 http://www.thehindubusinessline.com/industry-and-economy/logistics/air-india-optimistic-of-posting-cash-profits-this-fiscal-cmd/article4434433.ece?homepage=true&ref=wl_home

Jet-Etihad deal hits headwinds on investment safetyNew Delhi, Feb. 20:

Indian track record in protecting overseas investments, especially in the aviation sector, is a matter of concern for Etihad, say sources. The Gulf-based airline is currently in the process of carrying out due diligence for picking up a stake in Jet Airways.
To begin with, Etihad will have to clear Arab misgivings about India’s investment protection regime. With some past investments from the United Arab Emirates into India, including Etisalat, DP World and TAQA, running into difficulties, it is possible that Etihad wants to have a watertight case before investing in Jet Airways.
According to industry analysts, Etihad might be worried that if it were to invest in Jet and the Indian carrier ran into financial difficulties it would have repercussions for the Gulf carrier.
Kingfisher effect
These fears possibly stem from what is happening to another Indian carrier — Kingfisher Airlines. Though Kingfisher stopped operations in October last year, leasing companies are finding it difficult to take back the aircraft that they had leased out to the airline because entities like airport operators, who have also lent money to Kingfisher Airlines, want their debts to be cleared before allowing the aircraft to leave Indian shores.
Etihad is probably wary of such a situation repeating itself when it has a stake in Jet Airways. There is also speculation that the two airlines have not been able to decide on the composition of the board after the sale. With Etihad making a multi-million dollar investment it will be keen on keeping some key positions, such as Chief Commercial Officer and Chief Operating Officer, with itself. There is also the issue of the members of the board, some of whom may not appeal to the Indian Government should they happen to be of Pakistani origin though they may acquired citizenship elsewhere since then.
There is also the issue of the Indian Government controlling the import of aircraft by Indian carriers. Any airline ties up finances for an aircraft from banks and other institutions well in advance of actually importing the aircraft.
If the Government decides to delay aircraft import this could again have an adverse impact on the investment made by the foreign carrier. The Delhi-based low-cost airline, IndiGo, is already facing hiccups in importing aircraft for which it has received in-principle approval.

Poor track record
Analysts also say that India’s track record in the opening of the civil aviation sector has not been a happy one. In the 1990s, when foreign airlines were allowed to have a stake in domestic airlines, the tie-up between some Indian and foreign carriers ended messily.
While officially there is no word as to what is holding back the deal, EtIhad’s Chairman, Zayed al-Nahayan, told Reuters on February 17 that the Gulf carrier needed to revise the deal. The Sheik who is also the Managing Director of the sovereign wealth fund of Abu Dhabi Investment Authority did not specify why the deal needs to be revised. But despite these concerns officials told visiting Indian journalists that the UAE is keen to expand its economic engagement with India.
Probably realising UAE’s concerns, the two sides have agreed to set up five committees within the existing task force to look at issues of infrastructure and energy, manufacturing and technology, investment in trade, ICT and civil aviation.
Pushing for BIPA
UAE is also pushing for early conclusion of a bilateral investment promotion and protection agreement (BIPA) between the two countries.

At the just concluded first meeting of the task force on investments, India and the UAE have in principle agreed for negotiations and early conclusion of BIPA. The broad negotiations for the agreement are almost complete and it is possible that BIPA will be signed during the upcoming visit of Prime Minister Manmohan Singh to UAE in March this year.
http://www.thehindubusinessline.com/industry-and-economy/logistics/jetetihad-deal-hits-headwinds-on-investment-safety/article4435956.ece?homepage=true

Tatas return to skies with AirAsia, Telestra low-cost airline ventureNew Delhi, Feb 20:

The Tata Group is all set to return to Indian skies, 80 years after J. R. D. Tata piloted the first scheduled flight from Karachi to Mumbai.
Kuala Lumpur-based low-cost airline AirAsia has tied up with Tata Sons and Arun Bhatia of Telestra Tradeplace Pvt Ltd to start a low-cost airline in India. While the exact investment for the airline has not yet been firmed up, it is likely to be $30-50 million.
In a statement, AirAsia said it has submitted an application to the Foreign Investment Promotion Board (FIPB) through its investment arm, AirAsia Investment Ltd (AAIL), seeking approval for AAIL to invest 49 per cent in the proposed Indian joint venture. Tata Sons will hold a 30 per cent stake in the project and Arun Bhatia the rest.
AirAsia, which is Asia’s largest low-cost carrier with 118 aircraft, operates 63 weekly services from Kuala Lumpur and Bangkok to Chennai, Tiruchi, Kochi, Kolkata and Bangalore. According to analysts, the draw for AirAsia is the huge Indian market. Indeed, another foreign airline, Etihad, is looking to tie up with Jet Airways.
New Initiative
Though Tata Sons is to be a ‘mere investor’, the airline foray is the first major initiative by Cyrus Mistry, who on December 28 took control of the Tata Group from Ratan Tata. A qualified pilot, Ratan Tata had in the 1990s applied for starting an airline and in 2000 even tied up with Singapore Airlines to bid for Air India, the 1953 nationalised avatar of Tata Airlines set up in 1941 by JRD. This bid came to nothing after Singapore Airlines opted out.
As a Group spokesman said, “When AirAsia approached Tata Sons with the proposal for a stake in the venture, Tata Sons concluded that given its reputed business model, AirAsia could be a relevant and successful service provider in the domestic sector.”
To be headquartered in Chennai, the outfit will apply to the Directorate-General of Civil Aviation for the mandatory Air Operators Permit. The new airline plans to focus on providing connectivity to Tier II/Tier III cities. Sources indicated that the date the airline will become operational and the cities it will operate to will be decided in the next few days.
Fare war
AirAsia’s entry into the domestic market comes at a time when air travel is dipping on fare hikes and a slowing economy. This has triggered a fare war, with Jet Airways putting up some 20 lakh seats at discounts of 30-50 per cent. IndiGo too slashed fares and Air India joined battle today.
According to analysts, fares should dip further as has happened in Thailand and Indonesia, where AirAsia has a strong presence.
 http://www.thehindubusinessline.com/industry-and-economy/logistics/tatas-return-to-skies-with-airasia-telestra-lowcost-airline-venture/article4434932.ece?homepage=true

Airports body seeks guarantee from Kingfisher on settling dues

The Airports Authority of India (AAI) has made it clear to Kingfisher Airlines that until it gives a firm commitment on settling entire dues, it will not be issued a no objection certificate (NoC).
An NoC is a must for the beleaguered airline to resume operations. The airline’s operating permit was suspended on December 31, after it failed to provide service according to its truncated schedule.

AAI’s Chairman V.P. Aggarwal claimed that total Kingfisher dues, including penal interest, stand at Rs 390 crore.
“So we are asking a firm commitment because so far, what they have committed could not be honoured. We are asking for a firm commitment on the payment of the dues,” he added. The Government-owned AAI operates about 81 airports in the country, including Chennai and Kolkata.

Asked whether the state-run airports body would settle for some ‘partial payment’ of dues, Aggarwal said “We already had some cheques (from Kingfisher). One cheque of Rs 117 crore could not be encashed.

“That’s an issue and the remaining (amount) was not covered and does not have any sort of guarantee. They have to give some guarantee. Bank cheques were presented but they bounced. A legal issue is going on.”
Talking to the reporters on the sidelines of an event here on Tuesday, Aggarwal also clarified that the airport operator had not received any concrete proposal from Kingfisher.
To a question on whether the seizure of Kingfisher aircraft due to non-payment of dues was affecting the interests of lessors and violated the Cape Town Convention, the AAI chief said “I do agree that this is a problem as far as the Convention is concerned. We will soon have a meeting with Secretary on the issue.”
 http://www.thehindubusinessline.com/industry-and-economy/logistics/airports-body-seeks-guarantee-from-kingfisher-on-settling-dues/article4432650.ece?homepage=true&ref=wl_home

Price war in the air as Jet, IndiGo slash fares by 30-50%Mumbai, Feb 19:

The battle for the domestic skies has broken out. After a year of shrinking air travel, airlines are now removing all stops to woo travellers.
• On Tuesday, Jet Airways and IndiGo slashed airfares. Jet is offering 20 lakh seats from Rs 2,250 onwards. These seats can be booked till midnight of February 24 for travel till December 31. IndiGo slashed fares on select routes by about 30 per cent. The airline, however, did not make any official announcement about the offer. But, according to industry watchers, the low-cost airline is matching the fares offered by Jet on almost all sectors.
The moves by Jet and IndiGo come just weeks after SpiceJet announced a three-day sale when it offered 10 lakh seats at an all-inclusive fare of Rs 2,013 for any domestic flight between February 1 and April 30. However, the airline could sell only 7 lakh seats.
Jet Airways is offering the 20 lakh seats on over 450 domestic flights across 57 destinations operated by it and JetKonnect.
According to sources, IndiGo has not set any number on the seats on offer, adding that the airline will monitor the situation for the next four days before deciding on its next step.
“The first day of the Jet Airways offer saw good traction,” said Noel Swain, Executive Vice-President, Supplier Relations, Cleartrip. “But whether the airline is able to sustain the demand, we will have to see. Airfares have risen by 12 per cent in the first two months of this year compared with last year. These offers are short bursts to spur demand.”
Four slabs
Jet Airways is offering the discounted tickets on four different slabs for one-way travel, based on the distance.: Up to 750 km the fare is Rs 2,250; for 750-1,000 km; Rs 2,850;. 1,000-1,400 km, Rs 3,300; and above 1,400 km, Rs 3,800. These fares are inclusive of all taxes.
In the case of IndiGo, the sources pointed out, it is time; earlier a passenger books the better his/her chances of getting a lower fare.
SpiceJet officials were not available for comment on the latest round of price cuts. But industry sources indicate that the airline is offering reduced fares, with discounts of up to 30 per cent, mainly for travel during the lean season that extends till April.
Air India silent
Air India is silent on offering lower fares.
According to industry watchers, the airline will have to take note of the price war as unlike SpiceJet and IndiGo, Jet is a full-fare airline and its cutting fares can impact Air India’s bookings.
Interestingly, this time, airline watchdog Directorate-General of Civil Aviation (DGCA) has not stepped in. When SpiceJet introduced its three-day sale, DGCA had asked other airlines not to join the price war.
 http://www.thehindubusinessline.com/industry-and-economy/logistics/price-war-in-the-air-as-jet-indigo-slash-fares-by-3050/article4431660.ece

Jet Airways joins to spice up airfare war

New Delhi: India’s second largest carrier Jet Airways on Tuesday set the cat among the pigeons in the aviation industry by lowering fares considerably for an astounding 20 lakh seats in the economy class on booking from February 19 (Tuesday) till February 24 (Sunday) as part of a promotional fare.
This follows the recent promotional offer by SpiceJet on January 11 and could force other enter the fray. According to some travel agents, IndiGo is also offering 30 to 40 per cent discount on select flights.
The era of low fares, however, looks to be making a limited and sporadic comeback. “This special economy one-way fare offer will be available for travel on domestic sectors until the end of the year — December 31, 2013,” the airline said.
“The airline has introduced four different slabs for these one-way fares, based on the travel distance and the fares are inclusive of all taxes. Fares upto 750 km have been priced at Rs2,250, while fares for destinations from 750-1,000 km are priced at Rs2,850, similarly destinations for which the travel distance is a 1,000-1,400 kms are priced at Rs3,300 and above 1,400 kms tickets are priced at Rs3800. These fares are inclusive of all taxes,” Naresh Goyal-promoted Jet Airways said, unveiling its “bonanza”.
But the promotional fares offered by airlines could prove to be a headache for the government, which appears keen to ensure that airlines do not sell tickets below the cost of operation.
Airlines, however, appear to have offered discounts following a negative growth in air traffic witnessed in 2012 due to grounding of Kingfisher Airlines.
Meanwhile, Jet Airways said, “The one way fares from Mumbai to Ahmeda-bad, Mangalore, Hyderabad, Nagpur or Bhopal would be Rs2,250, and to Bengaluru, Raipur, Coimbatore or Jaipur it would be Rs2,850, to Chandigarh, Delhi, Bhubaneswar or Visakhapatnam it is Rs3,300 and to Kolkata Rs3,800.
 http://www.deccanchronicle.com/130220/news-businesstech/article/jet-airways-joins-spice-airfare-war