On January 25, British Airways announced that a ticket from London to Mumbai would cost only Rs 10,000 compared with Rs 14,750 earlier. Singapore Airlines last week cut prices between Singapore and any destination in India by 43 per cent to Rs 13,100. The latest to join the bandwagon is Sri Lankan Airlines which, a few days back, cut fares to major global destinations by 50 per cent, a return ticket to London now costs Rs 14,190.
They hope to make up for lower fares with increased traffic. But there are indications that these cuts will be extended. Jet Airways is slated to start flights to the US in April. On their part, the Indian private carriers are not happy with the price cuts and are expected to introduce very low fares to challenge rivals.
Cathay Pacific has come out with a scheme that will allow passengers a free three-night stay in Hong Kong on the purchase of a ticket from Mumbai or Delhi to Hong Kong, South Korea, Japan, China, Taiwan, the Philippines, Australia and New Zealand.
Some international carriers have also come out with massive incentive linked bonus schemes for travel agents.
Meanwhile, on the Gulf routes, Etihad and Air Arabia are locked in a price war. While Etihad is offering a return ticket to Dubai for Rs 11,125, Air Arabia is offering a ticket to the same destination for Rs 6,000. This is bad news for Air India Express, the low-cost arm of Air-India, which is hoping to start services to Dubai in April or May.
Srilankan Airways new fares
Hyderabad to
Colombo
Singapore
Hong Kong
Paris
London
