When airlines fly high, passengers fly low

Price hikes in the full-fare carriers amid the shaky economy and job insecurity have fliers jetting to Air India and low-cost airlines

When airlines fly high, passengers fly low

Price hikes in the full-fare carriers amid the shaky economy and job insecurity have fliers jetting to Air India and low-cost airlines

With Jet Airways and Kingfisher Airlines hiking fuel surcharges this weekend, passengers wrestling to control

expenses amid the shaky economy and job insecurity are looking to Air India (AI) and five other low-cost carriers for that cheap air ticket.

In comparison, the national carrier is offering reductions in fares across 35 routes connecting tier-II cities to Mumbai in addition to its existing summer discounts, while some low-cost carriers have introduced rock bottom return-ticket packages. The return-ticket packages, in fact, are a first in India's aviation history.

"Since the difference in fares is huge (between Rs 800 to Rs 1,000), air passengers are looking at alternatives. AI, which has reduced fares by 70 per cent on several sectors, is in demand," said Regi Philip of travel agency Cosmos Agencies.

'Costly gamble'

An analyst with KPMG said the pricing was a gamble that would definitely hurt the airlines in the long run. "Airlines are caught in a tricky situation. On one hand, they have to raise the fares to accommodate higher fuel expenses. On the other, ticket charges need to go down to attract more passengers, as travel demand is falling," he said.

Unsurprised at the swing in choices, analyst Mahantesh Sabarad, Centrum Broking Ltd, echoed that the move would decrease passenger traffic for Jet and Kingfisher, as people were wrestling with expenses amid the economic downturn and increasing job insecurity.

Rs 2,066
The average per kilolitre cost of Aviation Turbine Fuel

6.7%
The latest hike in ATF prices

"Exciting news! Mid-day is now on WhatsApp Channels