15% cut likely in US air tickets

After slashing fares to London, airlines are now likely to drop fares to destinations in the US by 15 per cent during the coming winter months. This is due to a capacity build-up in the sector and slack lean-season demand.

Air-India has set the ball rolling by introducing special promotional fares for its flights to New York, Newark, Chicago and Los Angeles this month. "The cost of a return economy ticket has dropped to Rs 37,990 (exclusive of taxes) from the current air fare of Rs 47,000," an A-I executive said.

"The huge seat capacity to the US and an increase in connectivity to various points will be the key drivers for the cut in fares," said a SOTC executive.

According to air travel analysts, other players in the US sector, including Virgin Atlantic, Delta Air and North West Airlines, will be forced to rewrite their fares to the US. "The fare structure will undergo further change once Jet Airways starts its service to the US, as it will offer promotional fares to woo travellers," said an executive with Cox & Kings India.

Jet Airways is expecting to receive the nod from the US Department of Transportation soon.

Leading airlines, including Air-India, British Airways and Jet Airways, have joined the bandwagon to woo London-bound travellers by offering a return ticket for as low as Rs 19,000. More airlines like BMI (British Midlands) are expected to follow suit in the lean season.

The southeast Asian air route, too, is expected to see a cut in fares as airlines are enhancing their seat capacities and offering better connectivity. Intense competition will also lead to more promotional schemes in the near future.