AI, Paramount Airways to hike fares by this week, LCCs to follow

Mumbai: With Jet Airways and Kingfisher Airlines hiking their fares yesterday by Rs 400, Low-Cost-Carriers (LCCs) such as SpiceJet, IndiGo, GoAir are likely to raise fares by eight to ten per cent from next week, following a 33 per cent rise in jet fuel prices since March this year. Air India (AI) and Paramount Airways also have decided to increase fares by this week.
According to a report in Economic Times, a senior official of SpiceJet informed that fares can increase but they have not yet decided the quantum of hike. M Thiagarajan, Managing Director, Paramount Airways said, “We are monitoring the situation closely. The 12 per cent increase in jet fuel will impact the operational costs of airlines. A price adjustment in fares is necessary.”
The Air India spokesperson said that airfares can go up in a day or two. After the proposed hike, a ticket on the Mumbai-Delhi route will be in the range of Rs 3,800-Rs 5,800. Currently, the fare on the same route is anywhere between Rs 3,429 to Rs 5,250 depending on the carrier. State-run oil firms recently hiked ATF rates by over 12 per cent due to a rise in international oil prices. Indian Oil, Bharat Petroleum and Hindustan Petroleum raised ATF price by Rs 3,949 to Rs 36,252 per kilolitre in Delhi. Interestingly, domestic airlines, such as SpiceJet, Jet Airways, JetLite, announced fares cut up to 48 per cent last week.
18/06/09 TravelBizMonitor

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

Categories: Low Cost General JUn 2009, NACIL Jun 2009, Paramount Airways Jun 2009