The Hindu : Business : Cheaper air fares on the cards

Online edition of India's National Newspaper
Friday, Jun 03, 2005

Business

Business

Cheaper air fares on the cards

Special Correspondent

More seats at discounted rates in lean tourist season likely

NEW DELHI: With prices of aviation turbine fuel (ATF) falling by about Rs. 3,200 per kilolitre in the domestic market and lean travel season setting in from mid-June, domestic airlines are all set to offer more seats at cheaper air fares as the lean tourist season sets in from June 15.

Airlines sources pointed out that instead of reducing the air fares in the wake of reduction in prices of ATF, carriers could easily go in for offering more seats at discounted fares.

Our Chennai Correspondent writes:

Air Deccan, the low cost airline, has decided to further lower its fares following the Petroleum Ministry's decision on Wednesday to effect an eight per cent reduction in the aviation turbine fuel (ATF) price.

According to Capt. G. R. Gopinath, Managing Director of Air Deccan, the details of the reduction in the respective sector fares would be announced shortly as the airline was in the process of computation.

"Today, with the benefit derived by dropping of the ATF prices, we will pass on the corresponding savings to the passengers for the support they have shown us. "In fact, in April, when the ATF prices were hiked by ten per cent, when all the other airline increased their fares, we were the only airline to absorb the ATF prices," Capt. Gopinath added.

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