Kingfisher, IndiGo join fare cut club

Close on the heels of fares cuts by its peers, Kingfisher Airlines and low-cost carrier IndiGo have announced fare reductions in certain sectors. According to executives, such reductions by other airlines are also on the cards.

While Kingfisher Airlines has announced a reduction of fares between 21 per cent and 65 per cent, Indigo has announced fares starting at Re 1. IndiGo has introduced fares starting from Re 1 to Rs 99, exactly in the lines of Air Deccan, four years ago. IndiGo's Re 1 fare is applicable for tickets booked 21 days prior to the date of travel.IndiGo will now offer an all-inclusive return fare of Rs 2,926 on the Delhi-Mumbai route.

Airfares could see a further correction in the coming months, with airlines gradually recovering from high fuel prices that led to high airfares and low passenger loads.

"Some more fare cuts are in the offing and it will happen any time soon. We will add some more sectors to the list of 19 sectors where fare cuts have already been effected," an Air India official said on conditions on anonymity.

"As aviation turbine fuel (ATF) prices or jet fuel prices are now at the July 2005 levels (about Rs 31,000 per kilolitre in Delhi) airlines can place more seats under the advance purchase fares schemes," said Kapil Kaul, chief executive officer, Centre for Asia Pacafic Aviation.