Is price hike in store for Deccan passengers?

After picking up a stake in Air Deccan recently, Vijay Mallya, Chairman of Kingfisher and Vice Chairman of Air Deccan, informed that Air Deccan will go for a price hike in fares so as to become profitable, reports CNBC-TV18.
Vijay Mallya said, "I still do not believe in low-cost, because there is nothing called low-cost. I discussed this - that the selling at a loss cannot continue - with Captain Gopinath and he agreed with me. So, the inevitable is going to happen and Air Deccan is going to raise its prices."
Currently, the average airfares are at Rs 2,000-2,200. As per Mallya, to make the airfares viable, Air Deccan may go for a price hike of Rs 500-700, which will make the average fares at Rs 3,000.
But industry sources said this price hike might not happen immediately and would take at least 12 months to come into effect.
12/06/07 Moneycontrol.com

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Categories: Air Deccan Jun 2007