New Delhi: Private airlines like Jet Airways and IndiGo want public sector carrier Air India to raise air fares to make up for their losses. The top executives of these private carriers last Saturday met the aviation ministry officials to discuss that the national carrier was selling tickets 15-20% lower than the operating cost forcing them also to offer seats at discount.
“Jet Airways has claimed that they were losing R5 crore a day due to lower airfare prevailing in the domestic market. IndiGo said their losses were to the tune of R1 crore a day,” a senior aviation ministry official told FE.
He however said that the ministry would not dictate as to how Air India should price their tickets since airlines are free to charge any fare depending upon their operating cost, return and the premium thereon.
20/10/11 Nirbhay Kumar/Financial Express
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