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IA cuts fares on some routes by 20 per cent

business Updated: Jul 18, 2008 18:02 IST
PTI
IA

At a time when major carriers operating in the UAE have hiked their fares, Indian Airlines has adopted a new aggressive marketing strategy by reducing fares to most Indian destinations.

IA has cut fares on the UAE to Delhi and Mumbai routes by 20 per cent. The one-way fare has been cut from Dh 500 (about Rs 5,500) to Dh 400 (Rs 4,400), while the fuel surcharge remains same. The new fares came into effect from July 14.

Indian Airlines Regional Manager Abhay Pathak said that the airline had introduced special fares to Delhi and Mumbai last Monday.

On May 5, fuel surcharge was hiked to Dh 390 from Dh 350.

During the peak summer period, the fare would be Dh 100 cheaper although the fuel surcharge would remain the same. "We have a large number of blue-collared workers. We don't want to distance our customers. I think we'll maintain the fare," he said.

He said that the fares reduction was aimed at getting more volumes since the India-UAE sector was seeing over deployment of capacity. It will help us maximise our revenues, he added.

Most of the airlines, including Emirates, increased the fares citing the staggering rise in fuel prices.

Both Indian Airlines and Air India operate 19 flights daily from Dubai and Sharjah to Indian destinations. With the reduced fares, one-way ticket from Dubai to a destination in Kerala costs Dh 790, including taxes, down from Dh 900.

A single journey to New Delhi and Mumbai, too, is costing 790 against the previous Dh 1,070 and Dh 880, respectively.

Passengers flying from Sharjah to any Indian destination also stand to benefit from the reduced fares as Sharjah-Mumbai ticket price has come down to Dh 690 from Dh 840, while Sharjah-New Delhi ticket price is down to Dh740 from Dh 1,070.