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Jet airways slashes fifty percent on fares

Mumbai, Feb 20 (): Jet Airways today announced 50% cut in tickets on all routes if the bookings were done from today to Feb 24. It said that 20 lakh seats were up for grab for those who took the offer and that they can use the tickets till end of this year. The Airlines termed it the biggest ever offer in aviation history.

The airline operates in 57 Indian cities with 450 flights a day. This offer is restricted to domestic flights. This is more lucrative for the flyers than Spice Jet which offered one million seats at discounted rates till April end and that too on not all flights. The Jet Airways website showed that one way airfares which were Rs 5000 were reduced to Rs 2200.

It was Spice Jet that started the discounted fares. Aviation regulator DGCA had then called up other airlines and told them not to join the Spice Jet in slashing fares. National carrier Air India too desisted from such a move and termed it suicidal. Now Jet Airways move will impact even the low cost airlines like IndiGo and Go Air.

Yesterday the shares of Jet Airways fell by 7% after reports that Etihad owner Shiekh Hamed bin Zayed al-Nahayan telling the media during an aero exhibition in Dubai that the buying of stakes in Jet would take time as the earlier needs to be altered. In the coming week Jet’s director board was to meet and clear the stake sale.

Etihad and Jet owners met Commerce Ministry and Aviation Minister to clear the deal. Commerce Minister Anand Sharma spoke to Etihad Airways since the Gulf based company wants assurance that there would not be change in policy later.

Kuwait and Gulf Airlines invested 20% in Tailwinds owned by Naresh Goyal who operated Jet Airways. Aviation ministry asked Goyal to drop investments from foreign airlines since FDI was not permitted.

Goyal had to buy 40% stake. Now FDI in aviation has been cleared. Yet another hitch is that rules 25% of shares for public shareholding and restrictions on being members on director Board by partners are other irritants.