Global airlines to cut fares due to low fuel prices

Major carriers like Thai Airways, Emirates, Lufthansa, Singapore Airlines, British Airways and the national carrier, Air India are looking at passing the benefit of reduced jet fuel prices to customers. These airlines have rationalized fares and surcharges allowing air fares to drop by 10%-30 % for the coming festive season.

Thai Airways has dropped fares by Rs 2,100-Rs 5,300 on the Delhi-Bangkok and Delhi-Ho Chi Minh routes following a 10% fuel surcharge reduction from October 1. “Keeping in mind the huge business potential from the upcoming festive season, we have passed on benefits of lower fuel price to customers on all flights going out of India,” said a senior Thai Airways official.

According to sources in the aviation industry, Thai Airways is looking at further dropping fuel surcharge by up to 20% in next few week to increase its passenger load from India. Dubai-based premium carrier, Emirates has dropped its fares in the economy and business class by 7%-35 % on its Delhi-Dubai and Delhi-Dubai-London sectors.

Emirates vice-president (India and Nepal) Orhan Abbas, said: “We are offering special fares to our travelers till November 30, to cash on the upcoming festive season. The reduction have been made on all our flights to Dubai and destinations beyond.” German carrier Lufthansa has reduced fuel surcharges by $100 (around Rs 4,600) to $ 320 from the earlier $420 for its passengers on inter-continental flights in the same journey . British Airways has also dropped fares by 35% on all its flights from India to London.

National carrier, Air India follows a regular fare structure in the domestic market but goes for dynamic fares in the international market. Air India executive director corporate communications Jitender Bhargava said: “We are constantly adjusting fares keeping in view the seasonality of the various international sectors.

Total fares on some sectors could be down, while the high-pitched Europe and American markets with strong demand may not see any fare discounting.”In contrast to international carriers, domestic airlines are looking at increasing fares by as much as 10% to meet their high operational costs.

This despite jet fuel prices declining by 21% in the past two months Jet Airways, the largest private carrier is looking at increasing fares by 10%, while its arch-rival Kingfisher Airlines has scrapped all discounted fares from October 1 and is going for a similar hike.

Source: The Economic Times

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