Fuel prices compel hike in fares, says Jet Airways chief Goyal

Berlin: In sync with global airlines, Jet Airways chief Naresh Goyal said Tuesday that the aviation industry, including his own carrier, would have to raise fares if they are to avoid a crisis. His comments come even as crude oil prices continue to pole vault on a daily basis and threaten operational sustainability of airlines.

"The aviation industry has to raise the fares as and when the hikes come. I am not in a business where I should only look for capacity. At the end of the day, I will have to work to give profits to my shareholders," Goyal said. Crude prices touched $135 a barrel, impacting the price of aviation jet fuel (ATF).

Goyal was speaking at the Berlin Air Show ILA 2008, where he took static delivery of a new Airbus A330-200. The ILA 2008 airshow, which is the world's oldest air show, was inaugurated today. Jet Airways has placed orders for a total of 10 A330-200 long-haul aircraft.

Goyal said that his carrier had not committed itself to the purchase of the A380 super jumbo yet. "At the moment, we are not ready but we are studying the proposal," he said.

He also said that Jet was "seriously studying" the A350 XWB aircraft whose deliveries would begin from 2013. "We don't place orders just for the sake of it. For us, frequency is important."

Goyal also said though Jet had a "good amount of market share, but that does not mean we have room for complacency."