Airfares likely to rise by Rs 500-800 from April

Mumbai: There could be more bad news for air travellers. Domestic airlines may increase air fares by Rs 500-800 per ticket from April as the falling rupee against the dollar is denting their bottom line. Around 30% of an airline’s operational expenses are denominated in dollars.
M Thiagarajan, managing director of Paramount Airways, told ET: "If the dollar continues to appreciate against the rupee, we could increase fares in April." He, however, didn’t specify the quantum of the increase. "We have received feelers from airlines that they could increase domestic fares before the elections. The hike could be around Rs 500 a ticket for low-cost carriers and Rs 800 per ticket for full service airlines," said CEO of a leading Mumbai-based travel agent, who did not wish to be named.
An Air India official declined to comment. Officials of Jet Airways, SpiceJet and IndiGo were not available for comments. A Kingfisher spokesperson said the company did not intend to raise fares.
The rupee fell to a record low on Tuesday. It slipped by as much as 0.5% to an all-time low of 52.185 a dollar before closing at 51.985 in Mumbai.
04/03/09 Mithun Roy/Economic Times

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Categories: Indian Aviation- In General Mar 2009