Flying gets affordable once again as airlines cut fares

Mumbai: If you had given up flying after the surge in air fares, it’s time you had a rethink. A Mumbai-Delhi-Mumbai flight now costs almost half of what it did a few months ago. And the good news is that the fare cuts are not restricted to the main routes.
Over the last few weeks, airlines have quietly cut their fares. This has been attributed to the sharp drop in the price of aviation turbine fuel (ATF). ATF accounts for as much as 45% of an airline’s costs, and its price has declined by about 60% since last September to Rs 31,176 per kilolitre. Today, the price of ATF is down to what it was in July 2005.
The fare cuts could make a big difference for passengers. If you are looking to fly from Mumbai to Delhi this Friday and get back on Monday morning, you would pay just over Rs 4,500 for the ticket as against at least Rs 8,000 not too long ago - a fall that’s over 40%.
Over the last few weeks, airlines have quietly cut their fares. This has been attributed to the sharp drop in the price of aviation turbine fuel (ATF). ATF accounts for as much as 45% of an airline’s costs, and its price has declined by about 60% since last September to Rs 31,176 per kilolitre. Today, the price of ATF is down to what it was in July 2005.
The fare cuts could make a big difference for passengers. If you are looking to fly from Mumbai to Delhi this Friday and get back on Monday morning, you would pay just over Rs 4,500 for the ticket as against at least Rs 8,000 not too long ago - a fall that’s over 40%.
And it’s not as if the story is restricted to flights between high-traffic destinations. A round trip between Mumbai and Bhubaneswar that cost as much as Rs 8,500 is now down to a more affordable Rs 5,600.
Airlines have had little choice but to cut fares despite their numbers being under pressure as they need to get more people flying again.
04/02/09 Mithun Roy & Krishna Gopalan/Economic Times

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Categories: Indian Aviation- In General Feb 2009