Airlines hike basic fares by up to Rs2,200
10 February 2009
Airlines across the spectrum have withdrawn promotional schemes and instead raised basic fares between Rs1,200 and Rs2,200 on several sectors, beginning today.
Full service airlines, including Jet Airways, Kingfisher, and Air India, have steeply raised basic fares across sectors by Rs1,200-2,200 per passenger. The Mumbai-Delhi route will witness the steepest hike in basic fares by and average of Rs1,800-2,200 per passenger.
Low-cost airlines like Indigo, GoAir, and SpiceJet have increased basic fares by an average of Rs2,000 per passenger across major routes.
Airlines said the decision was taken because of the low load factor despite the promotional schemes.
"We have discontinued our promotional fares as the response has not been very good, but people who have already bought tickets under the scheme will enjoy the benefit," said an Air India spokesperson.
Kingfisher Airlines, India's No 2 private carrier, said it has increased air fares for various routes in the domestic sector effective 10 February.
"We confirm that on flights that can sustain higher revenue we have closed low fare buckets and are concentrating on selling higher fare buckets," a Kingfisher spokesman said, without quantifying the increase.
SpiceJet CEO Sanjay Agarwal said the air fare hike was expected and the airline will take decisions at a sector level. He said sales in January has increased marginally, but is not enough for the company to turn profitable.