Air fares to soar 12% as holiday season kicks in

Get ready to pay more for your air travel this holiday season. Fares are expected to go up by around 12% from the first week of December.
Differing from airline to airline, as well as sector to sector, the hike would be around Rs 360 per sector, highly-placed airline industry sources said on condition of anonymity.
Captains of the airline industry met in the Capital on Wednesday and have arrived at an informal understanding to avoid undercutting, the sources said. Jet Airways chairman Naresh Goyal, Kingfisher chairman Vijay Mallya, Arvind Jadhav of Air India, Rahul Bhatia of IndiGo and Sanjay Agarwal of SpiceJet were among those present at the meeting of the Federation of Indian Airlines.
All the airline companies said there was no joint decision on fares, but the sources said the denial was due to the fear of cartelisation charges, which would invite the wrath of the government and regulators. Mr Goyal and Mr Mallya said the meeting discussed industry issues like the new ground handling policy.
26/11/09 G Ganapathy Subramaniam/Economic Times

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Categories: Indian Aviation- In General Nov 2009