Election fallout: airlines lower fares

Mumbai: Various airlines have announced attractive fare schemes for the summer, amidst concerns that the five phase general election, scheduled for April 16 to May 13, may dampen travel.
Air India, GoAir and Jet Airways, for instance, have lowered their fares in a bid to better their yields.
“Airlines have taken the tough decision of introducing low fares to lure passengers even when their top-line is dropping at an alarming level. With elections around the corner, air travel is expected to drop alarmingly. Airlines are reducing fares to raise demand,” said an analyst with IL&FS Investsmart.
Flag carrier Air India set the trend by offering fares as low as Rs 1,891 for Mumbai-Goa sector. The fare includes passenger service fee, but excludes user development fee or UDF. Tickets for other sectors like Mumbai-Delhi have been priced at Rs 2,611. The fares are applicable till June 30, 2009. UDF varies from state to state; for Mumbai, it is currently at Rs 350.
Jet Airways, meanwhile, has announced special fares starting Rs 1,722 on 30-day advance purchases on its domestic network.
Mumbai-based GoAir, on the other hand, has added Amritsar, Bangalore and Chandigarh on its network; this enhances its services to eleven destinations. The airline has zero promotion fares for its new routes.
11/04/09 Shweta Bhanot, Shaheen Mansuri/Financial Express

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Categories: Indian Aviation- In General Apr 2009