NEW DELHI: Generous deals in domestic airfares are back, this time because of capacity addition by Vistara and AirAsia India and a fall in oil prices, according to analysts. Analysis in key domestic sectors shows decrease is higher in sectors where two new entrants— Vistara and AirAsia India—have added flights, with existing carriers following suit.
According to Yatra.com, India's second-largest travel portal, the average domestic fare has come down by about 19% from a year ago. The fall is higher on routes where the two new carriers have started operations. Some analysts said the decline in prices could be on the back of capacity addition, as airlines in India have not reduced fuel surcharge.
"The airlines have not reduced fuel surcharge even after the decline in oil prices. Drop in fares, if any, is more limited to specific sectors, depending on the capacity and also loads," said Ajay Prakash, former president of Travel Agents' Federation of India.
13/07/15 Mihir Mishra/The Economic Times
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According to Yatra.com, India's second-largest travel portal, the average domestic fare has come down by about 19% from a year ago. The fall is higher on routes where the two new carriers have started operations. Some analysts said the decline in prices could be on the back of capacity addition, as airlines in India have not reduced fuel surcharge.
"The airlines have not reduced fuel surcharge even after the decline in oil prices. Drop in fares, if any, is more limited to specific sectors, depending on the capacity and also loads," said Ajay Prakash, former president of Travel Agents' Federation of India.
13/07/15 Mihir Mishra/The Economic Times
