LOW airfares and competition are back to woo domestic and international passengers, but there are no takers yet.
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LOW airfares and competition are back to woo domestic and international passengers, but there are no takers yet. Airline executives and travel agents blame the economic slowdown.
Starting January 4, most airlines operating in India reduced fares by about 20 per cent for economy class and up to 45 per cent for business class, with varying validity. Even as Indian carriers differed on fare cut, under pressure from Union Civil Aviation Minister Praful Patel, foreign airlines like Singapore Airlines announced huge fare cuts too.
A Mumbai-Singapore all-inclusive return fare is now available for Rs 16,830, whereas Bangkok and Kuala Lumpur return fares are available at Rs 23,980 per ticket. The Sydney, Melbourne and Perth return fares from Mumbai are Rs 41,350 only. "The plan is to allow more customers to travel to these places," said Singapore Airlines general manager CW Foo.
Emirates has revised its fares too. A return economy class Mumbai-Dubai trip costs Rs 15,490. Similarly, revised fares for Mumbai-London and Mumbai-New York return flights are Rs 20,990 and Rs 39,990, respectively.
Commenting on the fare revision Emirates Airline VP (India and Nepal) Orhan Abbas said, "It is the right time to revise fares and pass on the benefit of lower fuel prices to passengers."
Jet Airways is offering a companion-free offer with a return first class ticket worth Rs 94,500 on the Mumbai-Hong Kong route and to Bangkok for Rs 57,065.
The fare cut has however not enthused travel agents. "We don't see a surge in bookings or increase in business in the near future," said Praveen Chugh, president of the Travel Agents Federation of India. He added that travel agents were anticipating a further drop in crude oil prices and a resultant decrease in airfares.
Travel to the middle-east and London has been badly hit, they claim.
Dubai-based Al Rais Travel in a statement said, "If the demand for travel has to pick up, the airlines should reduce prices further. Only a further fare cut of about 30 per cent would help."
Analysts said that travel bookings in Dubai are likely to be down by almost 35 per cent in the first few months.
Kingfisher Airlines though refuted the travel agents claim. "Flights to London have almost full occupancy," a spokesperson said. Kingfisher started its Mumbai-London service from January 5 and has a full house this month.
Kingfisher is planning to launch Mumbai-Hong Kong operations from January 12, and Mumbai-Singapore flight from January 16.
