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SpiceJet adopts new fare structure; merges base fare & fuel surcharge to simplify fare display and make more consumer-friendly

SpiceJet first Indian airline to implement consolidation of base fare and fuel surcharge, doing away with the concept of fuel surcharge altogether

Gurgaon, 15h April, 2014: In an effort to make pricing and fare displays simpler and more transparent for the benefit of customers, SpiceJet today announced the removal of the “fuel surcharge” add-on from all of its pricing, and consolidating it as part of the base fare.

Going forward, the fare displayed will be what you see is what you pay, only taxes and fees payable to the government and third parties extra, just like consumers experience when shopping for other goods and products.

This fare simplification actions what had been earlier communicated by SpiceJet to the Directorate General of Civil Aviation (DGCA).

SpiceJet is the first airline in India to implement this initiative, continuing its trend of taking the lead in making airline travel and pricing more consumer friendly and accessible to more people.

“We have been considering this proposal of offering consolidated price to customers 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 very different from the so-called and often meaningless “base fare”, said Mr. Kaneswaran Avili, Chief Commercial Officer, SpiceJet Ltd.

Consider for example –
BEFORE
DEL BOM
Base Fare 5850
Fuel Charge 2950
CUTE Fee 50
Passenger Service Fee 146
User Development Fee – Departure (UDF) 664
Government Service Tax 351
Rs 10011
NOW
DEL BOM
Base Fare 8800
CUTE Fee 50
Passenger Service Fee 146
User Development Fee – Departure (UDF) 664
Government Service Tax 351
Rs 10011
To implement the new structure, SpiceJet programmed the required modifications to its IT systems. This new pricing structure is now implemented with ratifications from our channels partners, OTAs, etc.
About SpiceJet:
SpiceJet is India’s second largest low fare airline. The airline currently operates more than 330 daily flights to 50 destinations, which includes 42 Indian cities and 8 international destinations.

SpiceJet connects its network using next generation fleet of 38 Boeing 737-800/ 900ER aircrafts, along with 15 Bombardier Q-400 aircraft that are focused on Tier II and Tier III cities.

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