Saturday, May 12, 2012

Rival, low-cost airlines make money, yet again

Mumbai: The rivals have pounced yet again to exploit the ‘crisis’ faced by two major airlines — Air India and Kingfisher Airlines.
Most low-cost carriers have hiked their fares by around 20% as fliers are avoiding the two airlines in view of the AI pilots’ strike and the frequent threats issued by Kingfisher Airlines’ pilots to do the same.
This had happened a couple of months ago as well when Kingfisher employees had gone on strike over non-payment of salaries. The increase in fares gains significance because the Director General of Civil Aviation (DGCA) on Friday had expressly asked other airlines not to exploit the situation and hike fares, as the operational cost has not changed in the past two months. The DGCA had said this after the issue was raised in the Parliament by MPs.
12/05/12 Shahkar Abidi/Daily News & Analysis
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