Why is GoAir not hiking prices?

The hike in aviation fuel may force carriers to increase passenger fares marginally. While GoAir is yet to hike fares, it sees only a Rs 50-100 hike coming in. MD, Jeh Wadia today also announced a JV with SIAEC (Singapore Intnl Airlines Engineering Company) to set up an engineering and maintenance facility.
The Wadia Group will invest USD 30 million in the venture and cater to all carriers. Scheduled to start operations by October this year, the line maintenance will have its presence in seven airports while the heavy maintenance operations will be up in nine months.
The low cost dark horse is expecting to be cash positive by the end of the financial year and turn profitable by the end of its second operating year. The company is also betting on the government relaxing norms to allow carriers to outsource ground handling and security, which could lower operating costs by 20-30%.
02/09/06 Moneycontrol.com

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