The Hindu Business Line : Domestic airfares set to go up from tomorrow

Going up
While the low-cost airlines are set to charge a base fare of Rs 2 per km, the full service airlines plan to charge Rs 2.40 per km
Indian is to increase fares on certain sectors by Rs 200 from December 1

New Delhi , Nov 14

Domestic airfares are set to increase yet again from November 16. While the low-cost airlines are set to charge a base fare of Rs 2 per km , the full service airlines plan to charge Rs 2.40 per km.

In effect, this would mean that a low-cost airline cannot charge less than Rs 2,400 while a full service airline cannot charge less than Rs 2,880 for a 1,200-km journey or for flying passengers between Delhi and Mumbai.

Besides, passengers would also have to pay the surcharge and the passenger service fee that would add another Rs 750 to the fare.

The base kilometre for calculating the price for a flight would not, however, apply to passengers who have booked at least three weeks before their flight. This is the fourth fare increase this year.

"At present passengers can get tickets that are discounted up to 60 per cent of the original fare. With the peak season setting in, airlines could look at reducing the number of tickets available at the lowest fare level. After all, the airlines also need to be run as profitable organisations," a senior airline official said.

The low-cost airlines are also meeting to decide on a base fare for various sectors. Sources indicated that a meeting was held between senior officials of Air Deccan, SpiceJet, GoAir and IndiGo.

Indian to raise fares

Meanwhile, Indian is to increase fares on certain sectors by Rs 200 from December 1 this year till January 31 next year.

Interestingly, the latest move of the airline industry comes at a time when global prices of aviation turbine fuel (ATF) are moving southwards. Earlier, the domestic airline industry had justified the fare hike on the grounds that ATF prices globally were increasingly sharply.

The intense competition among the domestic airline industry has seen airfares touch rock bottom levels and has led to many airlines declaring huge losses.

The low-cost airline, Air Deccan, recently reported a loss of Rs 341 crore for a 15-month period (April 2005-June 2006) on a turnover of Rs 1,352 crore.

More Stories on : Airlines | Airlines

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page