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IA hikes fares by 15 pc -- Introduces `day return', `specific flight' concept

Our Bureau

NEW DELHI, May 18

INDIAN Airlines on Friday announced a hike of up to 15 per cent in its rupee fares on select domestic sectors as part of its flexi-fare module which covers 68 of the 165 sectors on which the airline operates and comes into effect from May 25.

IA has also introduced the concept of `day return' fares between Delhi and Mumbai and `specific flight fares' between Delhi and Mumbai and Mumbai-Bangalore which are lower than the normal fares charged.

While the `night fares' and `round trip executive class fares' have also been revised, there is no change in domestic US dollar fares.

The sectors on which fares have increased include Delhi-Mumbai where travel by economy class goes up by Rs 455 to Rs 5,640 while in the case of the Delhi-Chennai sector, the hike is to the tune of Rs 760 in economy class to Rs 8,555.

IA last went in for an 11.2 per cent across-the-board hike in its fares in October 1998.

Similarly, the Mumbai-Bangalore sector economy class fare has gone up by Rs 340 to Rs 4,460, while the Mumbai-Kolkata economy fare is up by Rs 600 to Rs 7,540.

The fare on the Delhi-Hyderabad sector in economy class has increased by Rs 845 to Rs 6,995 and Delhi-Kolkata economy class travel will be dearer by Rs 530 at Rs 6,535.

However, fares on certain sectors such as Bangalore-Chennai sector remain unchanged.

In a statement, IA said that the factors determining fares include market size and share, price sensitivity and other service-related factors.

On the Delhi-Mumbai or vice-versa route, which is seeing maximum competition among the various operators, IA is to offer the passenger the `day return fare' of Rs 15,360 for a business class ticket and Rs 10,375 for travel in economy class on specific fl ights.

To avail of the fare, the passenger will have to travel by the first morning flight and return by the last night flight on the same day.

IA has also introduced specific flight fares on the Delhi-Mumbai, Mumbai-Delhi, Mumbai-Bangalore and Bangalore-Mumbai sector. However, to avail of the specific flight economy fare of Rs 5,185 charged for travel between Delhi-Mumbai or vice-versa, the pas senger will have to travel by IC 865 departing Delhi at 6 am or by IC 806 departing Mumbai at the same time.

Similarly, to avail of the specific flight economy fare of Rs 4,120 on the Bangalore-Mumbai sector, the passenger will have to travel by IC-110 leaving Bangalore at 2 pm.

Similarly on its night flights, the airline is to charge Rs 2,730 for travel in economy class between Bangalore-Hyderabad, Rs 2,685 for travel by economy class between Kochi and Chennai, Rs 2,900 for travel by economy class for travel between Kochi-Hyder abad and Rs 1,750 for economy class travel between Tiruchi and Chennai.

Besides, IA is to also offer executive class round trip fares between Mumbai-Bangalore-Mumbai or vice-versa at Rs 10,635, Kolkata-Bangalore-Kolkata or vice-versa at Rs 20,875 and Mumbai-Ahmedabad-Mumbai or vice-versa at Rs 6,650.

The airlines has said that while all tickets issued after May 25 will be as per the new rates, tickets issued on old fares before May 25, which have been partly utilised, will be accepted for further transportation within their validity without collectio n of difference in fare. However, any change of routing on or after May 25 will be at the revised fares.

Stiff competition for Jet

NEW DELHI: THE fight for loyalty of the Indian air passengers between Indian Airlines and Jet Airways will begin in right earnest after May 25, when IA's flexi-fare module comes into effect.

A cursory glance at the new fares, which are to be charged by IA after May 25, shows that in the high density Delhi-Mumbai and Mumbai-Bangalore sector, a cat and mouse fare price game will start between the two carriers.

Unless Jet decides to hike its fares or IA decides to backtrack on its hike, a passenger travelling by Jet Airways on Delhi-Mumbai will pay an additional Rs 50 than what IA would have charged. But on the Mumbai-Bangalore sector, IA will try and win over the loyalty of the customer by charging Rs 50 less than what Jet Airways does.

It may be recalled that in 1999, the Delhi-Mumbai and Mumbai-Delhi sectors saw both Jet and IA drop its fares to similar levels to attract customers.