The Hindu Business Line : International air fares dip as fuel prices, corporate travel decline

Free fall
Air India is offering a return ticket between Mumbai and New York at about Rs 45,000 now — down from Rs 70,000
The liberal exchanging of air services bilaterals with a number of countries have also helped in fares coming down

Ashwini Phadnis

New Delhi, April 10 If you are itching to see the change of Guard at Buckingham Palace in London, climbing to the top of the Eiffel Tower in Paris or going with your wife to visit cousins in Dubai, then there is no better time than now.

A combination of declining corporate travel and southward movement in global prices of aviation turbine fuel – with crude oil prices falling from $140 a barrel to around $50 now – is seeing the market get flooded with rock-bottom basic airfares.

For instance, Air India is offering a return ticket between Mumbai and New York at about Rs 45,000 now — down from Rs 70,000 earlier. Between Hyderabad and Dubai, Emirates Airlines has a ‘buy-one-get-one-free’ offer for Rs 30,000.

Then, Abu Dhabi-based Etihad Airways is offering a basic return fare of Rs 6,490 between Mumbai and London, or you can fly with Air India on the same sector for Rs 6,900. But before reaching for your wallet, remember that the final fare on Etihad will be around Rs 22,500 while a seat on the Maharaja will cost you Rs 2,400 more. Likewise, Thai Airways is offering a basic fare of Rs 23,935 which eventually comes to about Rs 41,000 along with taxes on the Mumbai-Australia route.

More seats

The Vice-President, Free Individual Traveller, Cox and Kings, Mr Ashutosh Mehere, feels that the current levels of international airfares are about 20 per cent lower than their earlier highest. And unlike in the past, this time most airlines are keeping a lot more seats open for bookings at these low fares.

Sources add that another reason for such low fares being available on some routes is the decision of the UPA Government to be liberal in exchanging air services bilaterals with a number of countries during its five years in office.

It was during the UPA Government’s time that an open sky agreement was signed with the US which allowed airlines of each country to operate as many flights a week as they wanted.

Similarly, an agreement was ironed out with the UK, which capped flights only to Delhi and Mumbai. This resulted in 113 weekly non-stop services being offered by five airlines instead of only two airlines operating on the route earlier.