Airlines may jack up fares again

New Delhi: High-flyers may see another hike in airfare next month as country’s largest private airline Jet Airways on Wednesday said it would increase tariffs in the upcoming festive season. Other carriers such as Air India and Kingfisher may follow suit.
The move comes at a time when the price of domestic aviation turbine fuel (ATF) is expected to decrease at the beginning of October.
“In the upcoming festive season one would try as good businessman to increase fare, but one will have to look at competitive scenario. During this peak season fare should go up, but we are certainly not looking at double-digit hike,” Jet Airways CEO Wolfgang Prock-Schauer said on the sidelines of an event organised by CII.
Beginning this month oil companies cut jet-fuel price by 16% to about Rs 59,244.26 per kilolitre, but airlines refused to lower airfare. Airlines maintain that any reduction in fuel price only reduce their losses, so bringing down tariff is out of question.
25/09/08 Economic Times

To Read the News in full at Source, Click the Headline

Categories: Indian Aviation- In General Sep 2008