Airfares may soar 25% in Jan

Mumbai: Flying in the New Year will be costly. Domestic airlines such as Jet Airways, Air India, Kingfisher Airlines and low-cost carriers are considering raising air fares by up to 25%, in January, encouraged by the recent rise in air travel and a higher passenger load factor.
A few airline companies have already hiked fares on select and profitable routes, according to people connected with the development. “There could be an average 25% hike in fares in the coming weeks across the country,” said a spokesperson for Jet Airways, one of India’s largest air carriers. “There are sectors like Goa where a 40% increase in fares has already been effected,” the spokesperson added.
State-owned national carrier Air India said 90% of the seats in most routes were already booked and the remaining would be sold at a higher price bracket, while the Vijay Mallya-owned Kingfisher Airlines has said it is actively evaluating a possible hike in fares. “We always believe in being competitively priced such that it reflects our service quality and if there are opportunities to improve yields, we would always evaluate the same,” said a Kingfisher Airlines spokesperson.
Post the hike, a Mumbai-Delhi full service carrier air ticket would cost anywhere between Rs 9,000 to Rs 14,000, whereas budget carriers ticket would cost around Rs 8,000, including taxes during non-peak hours. In fact, a few budget carriers have already increased fares. A low-cost carrier ticket for Mumbai-Kolkata sector was available for Rs 4,000 a month back, but it now costs Rs 6,000.
29/12/09 Mithun Roy/Economic Times

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Categories: Indian Aviation- In General Dec 2009