The global economic crisis saw air fares in Asia-Pacific region fall by an average nine per cent, but "reduced competition" in India saw them grow by five per cent in the last quarter of 2008 compared to the previous quarter, says a study.
"In India, reduced competition in the industry saw airfares increase by five per cent from the previous quarter – the largest quarterly increase across the Asia Pacific region," the American Express Asia Pacific Business Travel Monitor said in a study.
Maintaining that domestic travel prices in India rose by eight per cent quarter-on-quarter, it said the full Business Class airfares recorded the biggest quarter-on-quarter spike at ten per cent, though it was less than half of its year-on-year increase of 23 per cent.
Commenting on the findings, American Express Business Travel India Vice President Manoj Chacko said the Asia Pacific published airfares flattened out for the fourth quarter of 2008, curtailing a bullish year that saw year-on-year airfare increases averaging nine per cent.
During the first half of 2008, the economy was strong and airlines responded with airfare increases across all classes and destinations, the study said.