Weak passenger load factors have forced all global airlines to maintain ticket prices on flights originating from India during the October-March peak season at the prevailing levels.
Traditionally, airlines offer discounts during summer to tackle low demand and raise the fares during winters when international traffic from India picks up.
The decision to continue with the lean season (April-September) fares was taken at the board of airlines representatives (BAR) meeting held on October 4 in Mumbai.
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At the BAR meeting, airlines were of the opinion that with traffic failing to pick up, any fare cut would only eat into the yields of the airlines without boosting passenger numbers.
International air fares from India had already plummeted to rock bottom levels this summer due to a massive fall in traffic.
A spokesperson for Air-India said that the initial drop in PLF for the national carrier on the Western sector was 70 per cent. Following the withdrawal of United Airlines, cut in the number of flights by other carriers and rescheduling of flights by Air-India traffic has picked up and is now down only 10 per cent compared to last year. Air France has also seen a drop in the PLF to 70 per cent from about 90 per cent during September itself.
Airlines maintain they are yet to ascertain figures but independent estimates put the drop in load factors at 15-30 per cent.
Even the large airlines like British Airways, Lufthansa, Singapore Airlines and Cathay Pacific have seen a fall in load factors following the global recession and the recent turmoil following the terrorist attack on US.
Canada 3000 has seen a drop of 20-25 per cent in its load factor world-wide. The airline that started its Indian operations today, said that only 55 per cent of the seats were occupied as against expectations of 75 per cent.