Air fares likely to go up as AI stir deepens

Mumbai/New Delhi: A decision by Air India management to restore productivity linked incentives (PLI) of 7,000 of its employees failed to pacify the striking pilots, heightening the possibility of an increase in air fares in some of the country’s busiest routes.
More than 30 flights, including six international ones, were cancelled as Air India’s pilots reported sick for the second day running. “The fares could jump by up to 10% if the strike continues as many people are looking to rebook their tickets,” said a travel agent, requesting anonymity.
Executive with a private airline said private airlines would see an increase in bookings if the strike continues beyond the weekend. He also predicted a 5-10% hike in fares.
Air India’s executive pilots have been on sick leave since Friday midnight after the airline board approved a 25-50% cut in PLI for nearly a fourth of its 31,000 employees. Expat pilots and members of the Indian Commercial Pilots’ Association were spared the cut. Air India said the airline would resume normal operations on Monday.
28/09/09 Economic Times

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Categories: Indian Aviation- In General Sep 2009, NACIL Sep 2009