Flying with Air Deccan to cost more

Mumbai:Travelling by India’s first low-cost carrier Air Deccan will become a costly affair in the next few weeks, as its new promoter UB Group looks to pull the airline out of losses amid rising operating costs.
UB Group will also increase fares on its other scheduled carrier Kingfisher Airlines, its Chairman Vijay Mallya told reporters here. He added that market regulator SEBI has approved his Group’s open offer for acquiring additional 20% stake in Deccan Aviation Ltd.
Air Deccan Managing Director G R Gopinath had said last week that the fares may be increased by Rs 500-1,000, but did not say when. The budget carrier, which was launched in 2003, posted a net loss of Rs 246.50 crore for the nine-month period ended 31March, 2007 but expects to earn profits in the Q1of FY08.
31/08/07 PTI/Livemint

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Categories: Air Deccan Sep 2007