Kingfisher, Jet may cut fares by January

Mumbai: India’s two largest private airlines — Kingfisher Airlines and Jet Airways — are contemplating another round of fare cut. After reducing fuel surcharge by Rs 550 per ticket last month, both the airlines are likely to reduce basic fares by Rs 600 per ticket in January, industry sources said.
Sources said Kingfisher has called a meeting on Saturday (December 20) to discuss the exact amount of fare cut. Chairman Vijay Mallya and all top officials are expected to attend the meeting. Sources said Jet Airways, which has an operational alliance with Kingfisher, may also take a similar decision.
When contacted, a Kingfisher Airlines spokesperson told ET: “I don’t want to comment anything on fares at this juncture. But a meeting has been called to discuss on airfares this week. If any fare cut decision has to be taken, then company will inform to its customers at the right time.”
A Jet Airways spokesperson denied any such plan contemplated by the company. “No decision on fare cut has been taken yet. Moreover, the government and ministry can’t impose fares on Jet Airways as it’s an internal company matter,” she said.
The aviation ministry is mounting pressure on these two airlines as it wants them to pass on the benefits of a series of measures announced by the government to bail out the beleaguered industry.
17/12/08 Mithun Roy/Economic Times

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Categories: Jet Airways Dec 2008, Kingfisher Dec 2008