http://www.business-standard.com/compindustry/storypage.php?leftnm=lmnu1&subLeft=1&autono=105010&tab=r
Now, fly west for a fifth less
 
P R Sanjai / Mumbai September 18, 2006 
 
 
Carriers have slashed air fares from India to the US and Europe by 15-20 per cent in the face of stiff competition and over-capacity on these popular routes. 
 
For consumers, the good news is that they can avail of these rock-bottom fares for the next two months, after which carriers will take a call during the peak season. 
 
Air-India, which announced its new fares yesterday, is now offering an India to New York return fare of Rs 31,000, while a Delhi to London trip will set you back by just Rs 16,000. 
 
“Two months ago, fares on the US sector were Rs 45,000 plus taxes. Now, they have come down to Rs 31,000-35,000 plus taxes,” said a senior Air-India executive. Fares on the Europe route, including London, have dropped to Rs 16,000 from Rs 20,000 two months ago. 
 
Even Virgin Atlantic, which announced new fares a few days ago, is offering India to the US at Rs 30,400, down sharply from Rs 40,000 earlier. The airline is also offering Delhi-London return at Rs 16,000, compared with Rs 20,000 two months ago. 
 
Carriers like Lufthansa and British Airways, which kicked off the fare war in the first week of September, are offering India to New York at an attractive Rs 43,000, a drop of Rs 10,000 from just two months ago. 
 
The drop in leisure travellers at this time of the year, together with the huge addition in capacity, had forced airlines to drop their fares, said Raj Travels & Tours Chief Executive Akash Sheth. 
 
“Compared with 14 flights a week to London a year ago, India currently has over 100 flights a week to London. Flight frequencies on the US sector have also doubled. Moreover, the lean season has also prompted airlines to lower fares,” said tour operator SOTC’s Chief Operating Officer Sunil Gupta. 
 
Gupta said fares were at least 10 per cent cheaper than last year. He hinted that the fare war was here to stay for the next two months. 
 
Airlines such as bmi, Virgin Atlantic and Jet Airways have increased their capacity to the UK. 
 
“The US sector has also witnessed a rise in supply, with American Airlines and Continental introducing flights from Delhi. Air-India has also increased capacity during the year. Earlier, the flag carrier used to fly only to New York, now it flies to other destinations, including Los Angles,” a tour operator said. Another leading tour operator said there was no student traffic during this month to the UK, the US and Australia, unlike in July and August. 
 
In contrast, fares to South East Asia are set to go up from October. “This is the busiest season for South East Asian destinations. Though there was a decline in fares in this sector, they are likely to shoot up now,” another senior airline executive said. 
 
He said a passenger for this sector could still manage to get cheaper tickets by booking early. 
 
Fares to Singapore declined to Rs 13,000 from Rs 18,000 two months ago and Bangkok fares were down to Rs 8,500 from Rs 13,000. Fares for other sectors have also come down. 
 
However, the honeymoon for customers going to the west might be over in a few months. “Once the current inbound traffic, comprising non-resident Indians, tourists and relatives visiting India thins, fares to the US and the UK will be back on track,” said travel experts. 

AI is in a mess with fleet uncertainity. so it's doubtful whether they can keep this offer on for long. AI is now working on extending the lease.

Latest (Sept 18) is that Thulasidas, speaking in Mumbai, hinted at feelers being sent to SQ for a fleet rescue plan.