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After biofuel, airlines will reduce its cost?

Created by : pragati parihar, MBA/PGDM student, banasthali university,jaipur  | 06 25 2011 20:52:53 +0000
Industry : Transportation/AviationFunctional Area : Travel(Personal Interests)
Keywords : biofuel are being introduced to aviation industry for betterment to serve customers.
Activity:  736 views;  last activity : 08 06 2011 02:43:08 +0000

After biofuel introduced in industry they will reduce their fares or not?

  
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No,does not decrease its cost Vs Yes,reduced its cost
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It would not go down as swiftly as we are thinking. The competition and the price war is on since long but that has helped just a little..
By Padmaja Baskar, Product Development Manager, ONGC  06 30 2011 07:53:17 +0000
 
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Yes, becoz it will cost them less as comparative to buy fuel for their planes, let's hope positively.
By pragati parihar, MBA/PGDM student, banasthali university,jaipur  06 25 2011 20:52:53 +0000
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Very correctly said, Padmaja, as airfare will not decrease.

Thanks for referral, Padmaja.
By SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd  | 07 20 2011 12:02:04 +0000
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aviation industry is polluting air and since air travel has become frequent, more than cost biofuels would cutdown emissions which is paramount!!!
By Phani Mohan krishna, Head/VP/GM- Purchase/Material Mgmt, ANAGHA DATTA TRADE  | 07 02 2011 06:48:29 +0000
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inflation,supply demand are too major factors that impact the cost in almost all items.so long as bio fuels go it has many influence on the agricultural sector and so the demand being very high and the production cost being also high the supply cannot be meted out.therefore the bio fuels in no way is going to reduce the cost of airlines
By Rajendran Mariagnanam Mariagnanam, Founder and managing partner, Braintrain consultancy services LLP  | 07 01 2011 03:31:48 +0000
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By Prankur Sharma, Branch Manager/Regional Manager,Director, PS Import-Export,PS Chemicals,PS Spare parts,PS Logistics,PS IT Consultancy,PS Recyclers,PS Fuels  | 07 01 2011 02:34:32 +0000
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We can not say anything at this juncture. Firstly, jet biofuel are not freely available & not abundance in production. I think the production costs are not cheaper & moreover, a sustained efforts are made to produce biofuel for jets in more plants.

Secondly, it is introduced as a measure now, to reduce Global warming effect.

Thirdly, the fare is dictated not by solely the Airlines but by an Agency considering various parameters.

Most of the Airlines are just operating to meet no-loss and no gain basis. We know the latest bail-out of airlines story in Europe & US.

Thanks for referral Ms. Padmaja Baskar
By KALIYAMOORTHY , Oil & Gas Area Coordinator, Undisclosed  | 06 30 2011 12:11:59 +0000
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I dont think so. As miss Padmaja commented the price war between the competitors has little or no impact at all.They are strategies of the companies to lure the public.
By Srinivas suravajhala, Asst. Manager.  | 06 30 2011 11:31:11 +0000
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That is a good joke!! Never knew anything in this country to cost less nor anyone not take advantage of the situation and make some more money. The excuse will be making good past losses!!
By RAMESH KANDADAI, Principal Consultant, ARM Consultants  | 06 30 2011 09:04:43 +0000
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THEY WON'T REDUCE FARES, BECAUSE ALREADY THEIR BUSINESS IS GOING GREAT GUNS IN SUCH CIRCUMSTANCES REDUCING FARES MAKES NO SENSE.

 

THANKS FOR REFERRAL.....

 
By Sairam. M, System Administrator  | 06 30 2011 08:47:13 +0000
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even if the fuel is reduced they would not reduce the travel or ticket charges since most of the airline organization are running under loss every year so it would be difficult to say they will reduce the cost because this is going to be the time for them to take back their loss
By Sujith Kumar S, Sr Technical Recruiter, AIM PLUS Staffing  | 06 30 2011 08:43:38 +0000
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offcourse , lot of competition is there, and if they will not do so then it will harm themselves only.
By puneet , Manager Admin  | 06 28 2011 11:42:39 +0000
Argue for "No,does not decrease its cost"
Argue for "Yes,reduced its cost"
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