SpiceJet hints at fare hike soon

New Delhi: The period of low air fares in the domestic market could end soon at least for the low-cost airlines. The newly appointed Chief Executive Officer of the low-cost airline SpiceJet, Sanjay Aggarwal, told Business Line that domestic air fares will soon bounce back.
“They (fares) will change and in the next two to four weeks if not sooner. It is difficult to say whether they will go up 20-30 per cent because there a number of competitive pressure. I think fares will stabilise in the low Rs 3,000 range from the current Rs 2,000 levels,” Aggarwal said.
Officials said that the airline had not seen a corresponding increase in demands, despite the low fares available in the market.
Asked whether the airline would take the lead in increasing fares, Aggarwal said, “I would not comment on our future pricing policy it will be wrong in the current competitive policy. We will do whatever is required to protect our business plan. We are here to the sustain power. We will play it out to protect our numbers by which I mean the revenue numbers.”
Currently, a passenger can avail himself of various relatively low fare options on all the airlines. Not only have the airline cut fares in the recent months, but are also offering incentives such as spouse travelling for free for a business class passengers, apart from offering tickets for free and Re 1.
The passengers, however, have to pay the surcharges which take the total cost of a journey between Delhi and Chennai to Rs 2,975.
29/01/09 Ashwini Phadnis/Business Line

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Categories: SpiceJet Jan 2009