New Delhi: Last year air travelers had to fork out over Rs 9,000 in July-September in order to fly between Delhi to Mumbai. But thanks to Jet Airways kicking off a price war in August this year by offering fares of only Rs 3,777 on a limited number of seats, their competitors were forced to follow suit.
The offer was of course was not limited to only the two metros. Jet Airways offered over 7 lakh seats starting from Rs 1,777 across sectors which did not exclude taxes and airport charges.
As a result, tickets in August average fares on the Delhi to Mumbai route were available for sale at Rs 5,800 to 6,000 nearly 30% lower than last year. And average network fares went down by 18% from Rs 5,500 last year in July-September to Rs 4500 across sectors. Yet with the depreciation of the rupee increasing costs of aviation turbine fuel as well as lease rentals it was a killer for all airlines.
With just a month to go for the second quarter to end everyone expects their margins and profits will be hammered. To redeem some of it in the last two two days all airlines have decided to increase their fares ranging from 20% to 25% across the board.
05/09/13 Surajeet Das Gupta/Business Standard
To Read the News in full at Source, Click the Headline
The offer was of course was not limited to only the two metros. Jet Airways offered over 7 lakh seats starting from Rs 1,777 across sectors which did not exclude taxes and airport charges.
As a result, tickets in August average fares on the Delhi to Mumbai route were available for sale at Rs 5,800 to 6,000 nearly 30% lower than last year. And average network fares went down by 18% from Rs 5,500 last year in July-September to Rs 4500 across sectors. Yet with the depreciation of the rupee increasing costs of aviation turbine fuel as well as lease rentals it was a killer for all airlines.
With just a month to go for the second quarter to end everyone expects their margins and profits will be hammered. To redeem some of it in the last two two days all airlines have decided to increase their fares ranging from 20% to 25% across the board.
05/09/13 Surajeet Das Gupta/Business Standard
