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Sunday, July 25, 1999

International carriers to slash discount 

Sabarinath M  
Mumbai, July 24: International carriers led by Air India have decided to pull back the discount level to 9 per cent in August from the existing 15 per cent. The decision has been taken at a meeting of the board for airline representatives on Friday.

Aviation analysts said that the reduction in the fares is only temporary considering the fact that the airlines will have to reduce the fares in the off-peak season starting from November.

Though the fare fixing exercise has been undertaken regularly, the airlines have the habit of violating it. The fare fixing is only on paper and airlines will offer discounts within few days after the agreement. This time also the case will not be different, the analyst said. In fact, the fares vary from one airline to another. While Royal Jordan offers the minimum amount for Europe, Swiss Air does not have any discounts. India's international carrier Air India comes somewhere in between, said the analyst. The discounts are the best way to attract more and more passengers tothe country. The fares are controlled by adjusting seat capacities abroad. if fares are very high, the airline authorities will allow more capacity, which will automatically reduce the fares.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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