International Fares On Free Fall

Inspite of rising fuel prices and tight profit margins, several international airlines operating out of India have further dropped fares to access a larger market. Leading the offensive Thai Airways, Malaysian Airlines and Austrian Airways among others. Thai Airways has effected a 30-35 per cent reduction on its fares from India to most destinations in East Asia. A Delhi-Bangkok return ticket on Thai now costs Rs 11,000. While ticket prices to Singapore and Kuala Lumpur have been dropped to Rs 13,000, the India-Hong Kong return ticket now costs Rs 16,000.

"The reduced fares to Bangkok and some other destinations are part of a holiday package that we have rolled out for the Indian market. This is part of our effort to boost passenger carriage," a Thai Airways official said. Malaysian Airlines has also started a new travel package, priced at Rs 15,500 onwards, which will include complimentary stay in Malaysia and connections to other destinations like Bangkok, Colombo, Sydney, Perth, Auckland, Seoul, Johannesburg, Los Angeles, New York and London. Austrian Airways is offering a return ticket to any destination in Europe for Rs 19,990.

Though the airlines termed these discounts to be part of special promotions, analysts said growing competition on international routes from India is the real reason behind this drop in air fares. "This comes at a time when airlines are already braving a surge in oil prices. With air connectivity between India and the rest of the world growing, competition on most international routes have also increased. So, airlines are using the low fare bait to win customers", said an observer.