Jet cuts basic fare by 50 pc

Mumbai: Jet Airways has announced a staggering 50-per cent cut in its basic fares across all domestic routes following a dip in the passenger load factor and fuel prices. The cut in basic fares would be applicable to all domestic routes undertaken by Jet and its low-cost arm, JetLite.
Confirming the cut in its fares, a company spokesperson said that all fares had been adjusted according to the market conditions.
Aviation minister Praful Patel and the then finance minister P Chidambaram had been urging airlines to cut fares.
Terming the cut in fares as correct, Kapil Kaul, CEO, Indian Subcontinent & Middle East, Centre for Asia Pacific Aviation, said it was the right time to look at fare cuts since Oil prices were on the same level in the same period of last year. According to Kaul, it is the combination of both low fuel prices and falling demand that led Jet to cut its fares by 50 per cent. “If 40-50 per cent of the seats are wasted, it is better to cut fares as even from the cost perspective — when ATF is around $46 — it looks alright,” said Kaul. On the other hand, the move comes at a time when travel agents across the country have declared war against Jet for not paying them commission on ticket sales. In a media release, the travel agents said that all travel agent bodies across India had withdrawn their support to Jet and JetLite from December 4, 2008.
05/12/08 Shashank Shekhar/Indian Express

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Categories: Jet Airways Dec 2008