Mumbai: Despite soaring costs primarily due to the rupee depreciation, Indian carriers are selling tickets at the lowest price levels in the past two years, say airline executives and travel companies.
If that isn't enough, airlines fear that due to low demand, they won't be able to raise fares by any significant amount, even when the festive season starts in October. "Fares are at least 25% cheaper whichever way you compare it...month-on-month or year-onyear," a senior executive at India's top budget airline told ET.
Fares are at a record low, even for the current lean season, he added. "This comes at a time when costs are 25% higher. But there is no other way for us, given the demand. Also, full-service carriers aren't maintaining any fare difference with us, so that's worse," he says.
27/08/13 Economic Times
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If that isn't enough, airlines fear that due to low demand, they won't be able to raise fares by any significant amount, even when the festive season starts in October. "Fares are at least 25% cheaper whichever way you compare it...month-on-month or year-onyear," a senior executive at India's top budget airline told ET.
Fares are at a record low, even for the current lean season, he added. "This comes at a time when costs are 25% higher. But there is no other way for us, given the demand. Also, full-service carriers aren't maintaining any fare difference with us, so that's worse," he says.
27/08/13 Economic Times
