Indian Airlines widens EMI scheme; Air Deccan cuts Bangalore-Delhi fare

8 June, 2005: Gone are the days when deferred payment was only for loans. Now with airline majors moving heaven and earth to lure customers to their honey-laced packages, equated monthly installments (EMI) are here to stay for air tickets as well.

Indian Airlines, which introduced this concept on May 12 this year, under the name `Pay Smart’ scheme, has now extended its scheme to Standard Chartered bank card holders.

The scheme was first offered to Citibank and ICICI Bank credit card holders. The card holders would have the option of paying for tickets, including international and domestic holiday packages, discounted fares and special fares, in 10 equated monthly installments. The down payment is one installment.

Indian Airlines has brought the apex fares, smart super saver tickets and Fly select fares all under the EMI scheme.

Meanwhile, the Bangalore based no-frills air line, Air Deccan, slashed fares in Delhi-Bangalore sector by around 30%, in a move seen widely as a counter to the emergence of flamboyant liquor baron Vijay Mallay’s Kingfisher airlines.

With Kingfisher Airline offering Rs 4,900 fare in Delhi-Bangalore sector and Rs 2,900 in the Mumbai-Bangalore sector, Deccan was forced to cut its fares from 6,200 in Delhi sector to 4, 400. Air Deccan also cut the Mumbai-Bangal;ore sector fare to 2,600 from 2,900. Kingfisher provides meals on flight but Air Deccan passengers would have to
buy it.

The Air Deccan’s dirt cheap Rs 1 scheme takes off today (June,8). The logic behind offering 2-3 seats per flight is that its better to provide seats at dirt cheap rates, rather than flying with unoccupied seats. The catch behind the scheme is that only 2-3 seats per flight would be available. Also, the ticket cost to the customer would amount to Rs 222 inclusive of taxes and not Re 1 as is the perception.

About 40 per cent of Air Deccan’s travelers are first time air travelers. Air Deccan has also announced a tie-up with HPCL o sell air tickets from HPCL counters, in a bid to make air tickets easily available for its targeted low–end customers. The air line also announced plans to go in for an IPO to fund its expansion programme.

Jet Air was the first Indian airliner to come out with a highly successful initial public offering, earlier this year.

Air India is also planning an IPO by the end of this year or early next year, to fund its fleet modernization programme. The state-run carrier recently announced a flight to Seoul as well as introduction of non-stop flights from Delhi to Kuala Lumpur and Mumbai to Kuala Lumpur and Singapore.

BY OUR AVIATION BUREAU