SpiceJet adopts new fare structure

SpiceJet adopts new fare structure

Consolidates base fare and fuel surcharge

Consolidates base fare and fuel surcharge

In an effort to make pricing and fare display simpler and more transparent, SpiceJet has announced the

SpiceJet will bundle base fare and fuel surcharge together
SpiceJet will bundle base fare and fuel surcharge together

removal of ‘fuel surcharge’ add-on from all of its pricing, and consolidated it as part of the base fare.

Going forward, the fare displayed will be customer has to pay for, whereas only taxes and fees payable to the government and third parties will be charged extra.
This fare simplification actions what had been earlier communicated by SpiceJet to the Directrate General of Civil Aviation (DGCA).

“We have been considering this proposal of offering consolidated price to customer for some time now. The standard way of displaying fares practiced by airlines in India is often confusing to customers, and we hope with our simplification initiative, customers will be better informed and more willing to purchase tickets without fearing the final price will be different from the so-called and often meaningless ‘base fare’,” said Kaneswaran Avili, Chief Commercial Officer for SpiceJet.

The below example states the new fare structure:

BEFORE

NOW

DEL

BOM

DEL

BOM

Base Fare

5,850

Base Fare

8,800

Fuel Charge

2,950

 

 

Cute Fee

50

Cute Fee

50

Passenger Service Fee

146

Passenger Service Fee

146

User Development Fee – Departure (UDF)

664

User Development Fee – Departure (UDF)

664

Government Service Tax

351

Government Service Tax

351

 

INR10,011

 

INR10,011

To implement the new structure, SpiceJet programmed the required modification to its IT systems. This new pricing structure is now implemented with ratifications from the airline’s channel partners, OTA etc.

The airline currently operates more than 330 daily flights to 50 destinations, which includes 42 Indian cities and eight international destinations.

Gary Marshall
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Gary Marshall
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