Tuesday, August 05, 2008

Low-cost airlines, low cost no more

Nagpur: The low cost air travel bubble seems to have burst. Given the steady rise in air fares, frequent air travellers are beginning to feel the pinch!
Dinkar Pande, a city entrepreneur was a frequent flyer of low cost air carrier until May this year. Pande shuttled between Nagpur and Mumbai on Mondays for business meetings and given the popularity of low cost airlines then, he ensured that he had booked the ticket much in advance.
But things have changed now. After some low cost airlines like IndiGo and Deccan Airways hiked air fare to Mumbai to Rs 3,100, Pande gave up air travel and instead turned to railways. After various airlines were forced to hike the fare due to an increase in aviation turbine fuel (ATF) prices, air travel has gone beyond the reach of a large section of passengers, sources said. IndiGo and Deccan Airways are no longer keen to keep their low-cost carrier tag and have marginally increased airfares for various destinations.
05/08/08 Sachin Dravekar/Times of India
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