This story is from January 15, 2015

Flight fares dip to almost par with second AC train tickets

Low aviation fuel prices, market competition make flying affordable
Flight fares dip to almost par with second AC train tickets
CHENNAI: You can now fly to Delhi for the cost of a Rajadhani Express ticket ( 3,000), thanks to the dip in aviation fuel prices and competition during the lean period.
Travel agents say the fare cut is mostly to draw travellers during the lean season that starts in January-end and also to lend confidence to travellers who postponed travel due to high fares triggered by disruption in Spicejet schedules last month.
A dip in oil prices meanwhile will help airlines to manage rising cost.
The special fares offered by Air India, Indigo Airlines and Jet Airways have pulled down the fares for travel between mid January and April-end. The fares are now just 550- 1,000 more than a two-tier AC berth on a train on routes from Chennai to Delhi, Mumbai, Kolkata, Hyderabad and Bangalore.
This is expected to be a big boost to people wanting to travel home for family visits or to getaway destinations for a short holiday.
A one-way flight ticket costs 2,900-3,000 on Chennai-Mumbai route, 3,000-5,500 on Chennai-Delhi route and 1,400 on Chennai-Bangalore route.
People who can plan two months in advance will be able to fly to Delhi by spending just 550 to 1,000 more than the Rajdhani train fares. Similar are the rates for Mumbai with a plane ticket for travel in March and April costing just 950 more than AC two-tier train fare.
“Airlines have introduced the discounted fares to boost travel. Flights are not going full on Chennai-Mumbai and Chennai-Delhi routes now. The number of people who fly will come down further after mid-January. The low fare will encourage people to fly on short vacations,” said Basheer Ahmed of Metro Travels.

A dip in aviation turbine fuel prices, which has fallen to its lowest since February 2011, has come as a blessing to airlines. Fuel bills amount to 50% of an airline’s operating cost. “Airlines will be able to offer discounts without much of an impact on their cost due to low fuel price.
“With tickets starting as low as 1,557, the sale has witnessed enthusiastic response. Bookings are up by over 100% week-on-week. This sale was followed by a similar offer from Jet Airways,” said MakeMyTrip senior vice-president (flights) Ranjeet Oak.
“The fares are expected to draw travellers who otherwise go by higher class on trains. The offer is also aimed at travellers who postponed their trips last month because of a hike due in fares due to disruption in SpiceJet schedule,” said Basheer. Economy air fares touched 10,000-20,000 on busy routes last month.
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