Tuesday, March 17, 2009

5% rise in airfares found in quarter four last year

It was heard that Indian airlines claimed of slashing flights airfares after ATF prices came down but it has been revealed by an exclusive industry report that airfares actually risen by 5%. A report named The American Express Asia Pacific Business Travel Monitor report, revealed that due to reduction in competition and falling rupee has let airfares to increase quarter on quarter which is effective on selected categories only.

Moves have been made by domestic airlines in India to reduce fares and make it cheap flights, after ATF reduced by almost 50% last year due to fall in prices of crude. This reduction in airfares is effective only on certain categories, while in most of the segments it has been increased. Fares in India rose by 5% which is the highest quarterly rise of airfares across Asia Pacific region. Whereas full business class airfares shown 10% quarter –on-quarter increase in airfares. India published fares rose 15% on year, while they rose 26% in domestic and 13% in Intra Asia Pacific.

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