New Delhi: No-frill carrier Air Asia India is looking to slash airfares on falling jet fuel price and possibly triggering a fare war in the domestic skies, though across limited to sectors operated by the airline. The possible fare cut comes in the midst of peak travel season and mounting losses of the airline industry.
Speaking to Financial Chronicle, the airline CEO Mittu Chandilya said that fuel constituted 50 per cent of their operating cost and the reduction in ATF price would be passed on to customers. The aviation turbine fuel (ATF) price at the country's busiest airport at Delhi has come down by about 19% as on December 1, compared with the same month a year ago.
Air Asia started its domestic operations in June with a Bangalore-Goa flight. It currently operates flights to Chennai, Kochi, Jaipur and Chandigarh with an average of 76.2 per cent flight occupancy.
"We always want to pass on the benefit to customers. It's our practice. Once we make our calculations the extent of cut would be decided," Chandilya said, adding that the airline's plan to induct 8-10 Airbus A320 planes and starting about 30 new routes in 2015-16 remained intact.
03/12/14 Nirbhay Kumar/mydigitalfc.com
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Speaking to Financial Chronicle, the airline CEO Mittu Chandilya said that fuel constituted 50 per cent of their operating cost and the reduction in ATF price would be passed on to customers. The aviation turbine fuel (ATF) price at the country's busiest airport at Delhi has come down by about 19% as on December 1, compared with the same month a year ago.
Air Asia started its domestic operations in June with a Bangalore-Goa flight. It currently operates flights to Chennai, Kochi, Jaipur and Chandigarh with an average of 76.2 per cent flight occupancy.
"We always want to pass on the benefit to customers. It's our practice. Once we make our calculations the extent of cut would be decided," Chandilya said, adding that the airline's plan to induct 8-10 Airbus A320 planes and starting about 30 new routes in 2015-16 remained intact.
03/12/14 Nirbhay Kumar/mydigitalfc.com
