Airlines cut surcharges to spur summer demand

New Delhi: To create demand in summers, airlines in India have reduced fuel surcharge on air tickets.
Low-cost carriers SpiceJet and Indigo effected a cut last week, while Jet Airways and national carrier Air India followed this week. Industry sources said Kingfisher was evaluating a similar move from April.
Both SpiceJet and IndiGo have introduced an all-inclusive advance booking fare of Rs 1,722 for short-haul sectors, while the fare for long-haul sectors stands at Rs 2,700. Normally, the fuel surcharge for short-haul sectors itself is Rs 1,950, while the surcharge for the long-haul sectors is Rs 2,700.
This week, Jet Airways introduced advance booking fares starting from Rs 2,071 on all sectors, while its subsidiary and value-carrier, JetLite, introduced fares of Rs 1,722. Air India is offering fares between Rs 1,891 and Rs 2,611, inclusive of taxes and surcharges.
Most fares offered by carriers are valid for the entire summer season. However, like other special fares, airline executives admitted that only a limited inventory would be available in this case too.
Airline executives said the increase in the number of passengers would not make up for the cut in fares.
Travel company executives said the results had started to show.
29/03/09 Business Standard

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Categories: Indian Aviation- In General Mar 2009