Wednesday, 23 January 2013

High Costs for Flights to India

The high cost of fuel as well as the high user fees charged at certain airports makes India a challenging place to operate airlines. According to experts in the industry, the increased costs in airport fees and fuel makes expansion a difficult prospect in this market. There are currently no plans to add new destinations in India to the current British Airways flights according to a senior official from the airline. 

This is a difficult situation as India is a growing market which requires a lot of flights to various destinations. Industry experts explain that the Air Turbine Fuel costs in India are responsible for almost 40 percent of the cost of tickets versus about 25 percent in other countries. This creates a need for higher ticket costs which makes it hard to run full airplanes on a regular basis. However, with the growing expectations for flights to and from various destinations in India, airlines are struggling to find ways to make these flights more cost effective. The need for these flights is clearly there and research is being done to find ways to make these flights more economical for the airlines.

However, even with these financial challenges, the need for large numbers of flights in India is apparent and airlines are doing their best to meet these expectations. British Airways flights are being increased between Hyderabad and Chennai from five flights per week to six beginning in the summer 2013.  While there is some risk in taking on this expansion, the airline is confident that the expectations are high enough to warrant the extra expenses. A spokesperson for the airline explained that India is one of the fastest growing markets for British Airways and they are therefore doing their best to meet the demands for additional flights at a reasonable cost.

British Airways is offering a variety of discounts to allow for this growth to continue. Due to the increased cost of fuel and airport fees, it proves difficult for airlines that are unable to charge premium to successfully run flights to India.  However, some airlines are making the decision to offer discounts in the hope of establishing themselves as leaders which will pay off in the long-term.  With the economic growth and increased interest in tourism in India, this booming market is expected to continue to grow in the coming years. Airlines are working hard to compete in this challenging and significant area.


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