Airfares likely to drop by 20 per cent in the new year

Airlines plan to offer more discounts through advance purchase to lure railway passengers

Travel News
Travel News

Airfare may get more affordable in 2013 with fares expected to drop by almost a fifth as airlines plan more discounts to lure railway passengers. 

The industry expects domestic air travel to become more affordable in 2013, after fares shot up by 30-50% in 2012, compared with the previous year, following significant removal of capacity from the market due to the gradual grounding of Kingfisher Airlines. 

As a study by aviation regulator DGCA shows, fares soared this year due to the rise in operating costs for airlines on various counts, including fuel prices, rupee devaluation and airport charges. 

But passengers may soon get to savour some discounts. State-run carrier Air India, which was the first airline to offer discounts on advance bookings this year, plans to continue with its strategy. 

"The strategy for airlines going forward will be to offer more inventory at the lower end of the fare bucket. The response to our previous scheme shows that people like to buy in advance, so be it," a top executive at Air India told ET. 

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