Taking the tariff war in the Indian aviation sector to a different plane, budget carrier GoAir on Friday announced it would offer concessions on its tickets to customers, who succeed in getting a ticket from a rival airline that is cheaper than its own on the same sector.

The airline, owned by the Wadia group, would also reimburse the cost of immediate cancellation of its competitor's tickets.

Announcing the competitive move to 'commoditise' air travel, GoAir Managing Director Jeh Wadia told reporters: "If the price paid for the ticket bought on a competing airline is lower than the price paid for the GoAir ticket, then GoAir will adjust double the difference between its fare and the fare of the competing carrier as credit," which can be used to purchase GoAir tickets.

"GoAir will also reimburse the cost of cancellation done immediately of the other airline's ticket as credit, which can be used to purchase GoAir tickets," he said, adding that this "challenge will give the customer value for money which no other airline offers."

He said the tickets of the airline at present ranged from Rs 999 to Rs 2,999 and announced that the Delhi-Mumbai flight would range between Rs 999 till Rs 4,999 asking the passengers to book early to get the concessional fares.

The airline also announced the addition of its latest Airbus A-320 to its fleet, but the aircraft under a deal with the BCCI would, for the present, be used to transport the Indian and England cricket teams to the venues of the ongoing one-day international series.

"The new aircraft will be used exclusively for the transportation of the two teams as well as the security and the media coningent," Wadia said. The teams will next play the third ODI in Goa in the seven-match series.

Announcing its expansion plan, he said GoAir, which now has three aircraft in its fleet, would add five more by the year-end, get ten additional ones next year and another 15 in 2008, taking the total fleet strength to 33 in three years.

The airline, which now covers 14 cities with 28 flights, would connect Mumbai and Delhi to Jammu and Srinagar and launch a Delhi-Chennai flight. The A-320s operated by GoAir are configured in an all-economy 180-seat configuration.

Claiming 70 per cent seat occupancy at present, Wadia said his goal was to take the occupancy factor to about 90 per cent.

• Click here to search for lowest airfares!

Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group