Air India not to increase fares in October

Mumbai: National Aviation Co of India (Nacil) will keep its airfares unchanged although the county’
s two largest private airlines—Jet Airways and Kingfisher Airlines—have decided to increase fares by about 10% and 5%, respectively, from Wednesday.
An Air India official told: “The management has decided not to increase fares in October. On the contrary, the company has decided to take other measures to cut costs.”
This means, airfares of Air India will be little less than its private peers. For example, an economy class ticket on the Mumbai-Delhi route of Air India will cost around Rs 5,940, including taxes, compared to Rs 6,090 of Jet Airways and Kingfisher.
Nacil will take fuel efficiency measures from this month to save costs, in line with a report prepared by a global agency. It has also decided to stop selling last-minute tickets at a throwaway prices as it thinks the load factor will go up during the festive season.
Also, softening of ATF prices is expected to reduce pressure on the airline.
01/10/08 Mithun Roy/Economic Times

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Categories: NACIL Oct 2008