Is The Season Of Lowest Airfare Over?

For all those who thought the season of lowestthat this trend of low air fares will continue to exist
airfare is over there is a good news. The season isfor more years is because many of the airlines are
not over but is just beginning. If you are thinking thatsuffering from huge losses over a couple of years.
you have missed the best opportunity to fly at lowWith the insertion of new low cost flights in the
air fares then think again. These low flight charges willdomestic circuit, they don't have any choice but to
remain at least for a period of another 1-2 years.reduce their fares to be in the competition.
The aviation industry has seen many ups and downsA Bangalore flight ticket from Delhi would have cost
but none more dramatic than the current one. Theyou anywhere near Rs.8,000.00 in the year 2008. But
industry has seen a high until 2008 before thethe same is now available at almost less than half
recession started. The flight charges were at theirprice.
peak and a flight journey seemed to be a distantWhy low fares?
dream for a common man. However all this changedThe reason why most of the airlines are sticking to
quite dramatically in a matter of 6 months or so inthe low fares is because of the low load capacity
2008.and stiff competition among the competitors. Most of
There were hardly any takers for flight travel by thethe airlines are operating their flights in loss because
end of 2008 as most of the corporate companiesof the fall in air traffic. To cover the operating costs
chose to cut down the air journey expenditure. Manythe airlines have to offer some seats at very low
CEO's of MNC's decided to travel by economy classcosts or almost zero base fare.
instead of business class. None of the companiesThese seats which will be unoccupied are now being
were ready to incur huge expenditures on air travel.occupied by the first time fliers at a low costs. This in
Even the Government directed their higher ups toturn helps the airlines to recover their cost of fuel
travel by economy class. All this had a severe effectand other charges even if they're not able to make
on the industry and many airlines had to come upmuch profit out of these seats. This strategy will help
with an idea where they had to sell tickets forthe airlines to float in this competition and once the
lowest airfare than ever before.situation improves they'll be able make profit like
Why the trend will continue?earlier times.
One of the main reasons why you need to believe