Air India announces fare cut up to 82 percent
Monday, December 29, 2008 by Shrish Pandey
"Airfares would get cheaper by over 25 per cent after most airlines announced major cuts in fares on many routes, including the busiest Delhi-Mumbai sector.
An all-inclusive economy-class ticket from Delhi to Mumbai in a full-service carrier could now cost less than Rs 5,000.
On Tuesday, state-run Air India announced reduction of up to 82 per cent in its basic fares on 20 of its busy domestic sectors. This would result in much lower final fares, which would include taxes and levies of about Rs 3,000 over and above the basic fare.
Falling fuel costs and decelerating demand for air travel have forced airlines to cut fares. Aviation turbine fuel (ATF) prices have more than halved since the peak prices of Rs 70,000 per kilolitre in August.
“Following the gradual reduction in the price of ATF, we have decided to reduce the fares,” a spokesman for Air India said.
Jetlite, the low cost arm of Jet Airways, also announced up to 40 per cent reduction in its basic fares and a Delhi-Mumbai one-way economy ticket would cost about Rs 3,900 on the airline.
Kingfisher Airlines said it would cut fares in the coming month, but has not announced the quantum of reduction. Low-cost carrier SpiceJet has also announced fares that start with a basic fare of as low as Rs 99."
(HT News)
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