India’s airlines slash domestic fares
DELHI – Airlines in India have launched a massive fare sale in a bid to turnaround their flagging fortunes.
State-owned carrier Air India this week announced major reductions in fuel surcharges for domestic fares on 20 major sectors,
Air India, in a statement, said the average reduction would be 52 percent in basic fares.
Other private airlines have made similar adjustments in response to falling fuel prices.
Jet Airways reduced basic fares on economy class on all its domestic flights with immediate effect.
Low cost carriers SpiceJet and IndiGo also released rock bottom advance purchase fares this week and Kingfisher is expected to announce its offers in the fare war in the next day or two.
Indian carriers have posted big losses in the face of shrinking traffic and surging fuel costs.
AFP reported that passenger growth has slowed from 33 percent in 2007 to 7.5 per cent in the first half of the year and turned negative in August when 17 percent fewer people flew compared with a year earlier.
Ian Jarrett
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