Financial Daily from THE HINDU group of publications Friday, Feb 20, 2004 |
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Airlines Logistics - Airlines International air travel to cost more Ashwini Phadnis
New Delhi , Feb. 19 BE prepared to spend a wee bit more for economy-class travel to Europe, the US, South-East Asia and the Far East from April 1 this year. While the listed air fares in economy class are being revised upwards by five per cent for travel to these destinations, the air fares to Africa, the Gulf region, New Zealand and Australia are not being touched for now. Sources told Business Line that the exact quantum of the hike in airfares will become clear in the next few days when individual airlines decide on their pricing. Leading travel agents noted that since most airlines rarely charge a passenger the listed fare while selling a ticket, it is, therefore, difficult to immediately assess the quantum of increase in fares that the individual airlines will settle for. The move to increase fares is said to have been initiated by Air India (AI), which is said to have notified the Directorate General of Civil Aviation (DGCA) of an increase in air fares from April 1. Inevitably, following suit would be the other airlines which are eager to cash in on the huge demand from Indians wanting to travel abroad during the peak summer season. Sources indicated that AI, being the national carrier, is the only airline which is allowed to file fares for India to any part of the world with the DGCA, while other airlines are allowed to only file fares from India to their home country. However, airline sources defended the move of raising fares by pointing out that when passenger demand was down, airlines did lower fares to attract more passengers. At present, air tickets to various international destinations vary. While a passenger from Delhi is likely to pay about Rs 35,000 for a direct return flight to London, a return trip to Bangkok is likely to cost about Rs 17,000, travel agents said, and added that there was likely to be a slight increase in ticket costs after the latest move by international airlines. Interestingly, in August last year, several international airlines, including Air India and British Airways, raised their first and business class fares for travel from India to the US, the UK, Canada and Europe by 30 per cent. At that time, a business class ticket on the Delhi-London sector went up to Rs 1,72,000 from Rs 1,32,000, while a passenger flying first class on the same route had to pay Rs 2,42,400, up from about Rs 1,86,500.
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