Foreigners can now fly at 50% cheaper fares

India's low-fare party in the domestic skies is now being extended to foreigners as well. Foreign nationals and non-resident Indians booking tickets abroad for local travel on India's full-service airlines can look forward to a near 50% reduction in ticket prices with the legacy carriers planning to do away with their dual-pricing strategy on dollar fares.

The three legacy carriers — Jet Airways, Indian Airlines and Air Sahara — have a policy of charging dollar fares on tickets sold abroad to foreigners. These dollar fares are generally priced around 50% above the normal rupee fare. This practice is now being discontinued, and the dollar fares would now be charged on exact conversion rates against the rupee and not at a premium. While Jet Airways has already withdrawn this dual-pricing strategy earlier this week, Air Sahara is expected to do away with the same by the middle of this month. Indian, sources said, is also reviewing its dual-pricing plan and is expected to follow suit within this month. The other airlines in the market — including the low-cost carriers — never had this dual-pricing strategy.

"The idea is offer foreigners who are travelling on the domestic network in India an opportunity to enjoy the low fares in the market," said a Jet Airways spokesperson. Air Sahara president Alok Sharma, when contacted, said the airline has been contemplating on discontinuing this dual-pricing strategy for some time now, but a decision on the matter has not been taken. The move, analysts said, would help make the legacy carriers more attractive to foreigners.

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