Domestic airfares to go up

Our Corporate Bureau
08 October 2004

New Delhi: Domestic airlines plan to impose a ten per cent hike in their domestic fares from October 14, 2004. Jet Airways, Air Sahara and Indian Airlines plan to hike fares by 10 per cent in both business and economy class. Air Deccan however, has no plans to hike fares.

GR Gopinath, managing director, Air Deccan said, "Air Deccan is not planning to hike fares. We feel that the pricing strategy followed by our airline still allows us to charge the existing fares despite the northward movement in oil prices." The three leading airlines are expected to make a firm announcement about the fare hike in the next couple of days. The fare hike is also likely to affect the dollar paying international passengers flying on the domestic routes.

The depreciation of the rupee against the dollar recently coupled with the northward movement in global oil prices are cited as the two main reasons for proposed fair hike.

The proposed hike, as and when it comes into effect, will be the second one this year. Thee three airlines had imposed a 10 per cent hike earlier in June, this year.