Air fares may get cheaper
Friday, November 21, 2008 at 3:11 am Under Business News 36 views
The Travel Agents Association of India has called for an emergency meeting of over 2,000 members to chalk out the future course of action, after agents agreed to withdraw their transaction fees on flights.
Transaction fees have been withdrawn to the tune of between Rs 350-500 on domestic tickets and between Rs 1,200-10,000 on international tickets. This may lead to a drop in air fares.
Airlines in no mood to cut fares despite lower ATF prices
The cash-strapped airline industry is not yet ready to reduce airfares despite the cut in jet fuel prices today by another 12 per cent, saying that the heavy losses that accumulated during the past several months, when the prices peaked, were still to be recovered.
The impact of the cut will be evaluated before a decision is taken to pass on the benefits to the air traveller — this was the common refrain of most airline executives contacted for their reaction on the reduction in aviation turbine fuel prices, bringing them at par with the price level of September 2007.
Welcoming the move as “good news”, Air India Executive Director Jitendra Bhargava said it should also be borne in mind that when the prices were shooting up month after month, the airlines were passing on “only part of the additional financial liabilities”.
“We will wait look at the economic viability before any decision on reducing fares,” he said.
Pointing out that the US dollar had appreciated significantly vis-a-vis the rupee, Bhargava said several major cost-heads of an airline were dollar-denominated.
He said the passenger load factor had also declined due to the global economic slowdown leading to less air travel.
(With inputs from Agencies)
( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)
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