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Friday, Nov 17, 2006
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Air-fare uncertainty

Journalists on the aviation beat have finally come to terms with the impact of competition that domestic airlines face. Having being tipped off that air-fares were due for a revision from Thursday, most correspondents put out the news accordingly. Only when they attempted to check the exact level of the increase did they run into a wall. Later, they found that none of the airlines was sure of the quantum of the hike because of fear that the low-cost airlines may not follow suit. Gone are the days when the market leader set the pace and others followed without question.

But the beneficiary, of course, is the consumer. A veteran scribe recalled that the Delhi-Chennai flight used to cost around Rs 3,500 way back in the early 1990s, while, despite inflation and the significant increase in prices, a Delhi-Chennai ticket today can be bought for as little as Rs 2,100 if booked in advance.

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