Most of the domestic airlines have warned that the dollar's gravity-defying act has added to their costs. Since the July-September quarter is low travel season when airlines lower charges to attract passengers, fares in the October to mid-January period would be 'adjusted' significantly upwards to make up for the falling rupee's impact.

Low-cost carrier GoAir, which is India's smallest schedule airline with 15 aircraft, estimates an additional expense of Rs 30 crore per annum for every rupee depreciation. The impact on the big boys—Air India, Jet and IndiGo that have almost 100 aircraft in their fleet— and SpiceJet can well be imagined. Besides fuel, other expenses on aircraft leasing, engine maintenance are also dollar denominated.

(You need to login first to read complete news).
New User? Register for FREE!
» Back to Travel News