Fares belie airlines’ claims, jump 5% in Dec quarter

jump 5% in Dec quarter

jump 5% in Dec quarter

Mumbai: Contrary to the claims of airlines in India slashing fares after a drop in ATF (aviation turbine fuel) prices, an exclusive industry report, has revealed that air fares actually have risen 5% in the October-December quarter.
The American Express Asia Pacific Business Travel Monitor report says reduced competition and a falling rupee are to blame for increased fares quarter-on-quarter (q-o-q) and that reduction has happened only in select categories.
The American Express report is a widely-consulted industry report that comes out annually and focuses on industry trends and major issues.
Domestic airlines in India have continuously highlighted their moves to bring down fares, after ATF prices fell by about 50% in the past seven months due to a fall in crude prices. However, according to the report, these reductions have been implemented only in limited segments while in most other categories, the fares were actually raised.
Fares in India rose by an average 5% — which is the largest quarterly increase across the Asia-Pacific region. Even full business class airfares recorded the biggest q-o-q increase at 10%, the report states.

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~ by anand213 on March 18, 2009.

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