There is always a speculation on how much cheaper can air fares become. But, the cheaper they get, the better it is for the economy. Generally, the air travel is undertaken by the business travelers and the leisure travelers. In both these cases, the cheap air tickets signal and play a pivotal role in the economic growth.
For one, the existence of cheap air tickets itself is a pointer that there is a condition of almost perfect competition in aviation field, signifying that there are optimal number of players who are pricing their flight tickets as per the prevailing market conditions of demand and supply. This is a pointer to the fact the airlines are operating under conditions of growing economy. The very fact that the airlines are able to offer the reduced fares on their tickets signifies that they are reaping the benefits of economies of scale by increasing their operations to new areas.
Cheap air tickets help in increasing the domestic and international tourism since more people can now afford to fly to and from various destinations within and outside the country. With growth in inbound tourism, there is a multiplier effect on the economy as many related industries such as hotels, car rentals and others get business, more people get employment and the country earns foreign exchange. With increase in the outbound tourism due to the reduction in flights fares, the country earns the taxes and the people get to explore more of the outside world. The increase in the domestic tourism also stimulates the economic growth and development in tourist regions.
Cheap air tickets also make it possible for the business travelers to venture out for exploring more opportunities. With more connectivity to different regions and the reduced prices of the flight tickets, it becomes possible for the people to travel to new and existing destination more often for exploring new opportunities and setting up new ventures. The growth in air travel is a signal of the times of economic boom, either for increasing business related activity or the vacation-related travel, which in turn points to the fact the disposable incomes of the people are rising.
Increase in air travel also benefits regional development as a result of cheap air tickets offerings of the airlines as it makes air travel more attractive as compared with other modes of transportation. The relatively inaccessible and difficult terrain areas can be connected by air making it possible for people to reach their easily.