Airfares actually rose 5% in Q4 last year

Mumbai: Contrary to claims of Indian airlines slashing fares after the reduction in ATF (aviation turbine fuel) prices, an exclusive industry report that is yet to be released, says air fares in India actually rose by 5% in the last quarter of the previous year.
The American Express Asia Pacific Business Travel Monitor report, which is scheduled to be released globally on Tuesday, says that reduced competition and a falling rupee have increased fares quarter on quarter in India and that reduction in fares has happened only in select categories.
The American Express report is a widely consulted industry report that comes out annually and focuses on industry trends and major issues.
Domestic airlines in India have continuously highlighted their moves to reduce fares, after prices of ATF fell by about 50% in the past seven months due to a fall in crude prices. However, according to the report, these reductions have been implemented only in limited segments, while in most other categories, the fares were actually increased. Fares in India rose by an average 5% which is the largest quarterly increase across the Asia Pacific region. Even full business class airfares recorded the biggest quarter-on-quarter increase at 10%, says the report.
India published fares rose 15% on year, while they rose 26% in domestic and 13% in Intra Asia Pacific; fares were up 3% in Europe, Middle East and Africa and by 1% in the Americas.
17/03/09 Mithun Roy/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Indian Aviation- In General Mar 2009