Sunday, November 20, 2016

Currency ban grounds air fares, flight bookings

New Delhi: Post demonetisation of Rs 500 and Rs 1,000 notes, domestic air fares have dipped to an all-time low and advance booking have also hit rock bottom. Air fares are now down to 2004-05 rates when Air Deccan entered the market offering lower fares thus changing the market dynamics.

Travel agents said there has been a reduction of at least 30 per cent in domestic airfares since the announcement of demonetisation and international airfares are slowly inching downwards.
Ticket fares for Delhi-Bengaluru and Delhi-Mumbai flights when checked in October-end were at Rs 4,500 and Rs 3,800 for travel in early December. The fares dropped to Rs 2,750 and Rs 2,100 inclusive of taxes since the announcement of demonetisation. Rates to other cities too have dropped.

Several domestic airlines this week announced special discounted fares in order to cope with the low airline bookings. The demonetisation move has come at peak tourist season.
19/11/16 Sanjay Singh/New Indian Express