Jet to hike domestic fares

After Air Deccan’s plans to increase fares, Jet Airways follows suit. So, are days of cheap air travel over? While it might still be a wait-and-watch situation from other airlines, Jet, in the meantime, plans to increase fares in the range of Rs 200 to Rs 500 on the domestic routes shortly.

Speaking to newspersons on sidelines of a tourism seminar held by Bombay Chambers of Commerce and Industry, Ms Sonu Kriplani, Vice President-Sales of Jet Airways, said, “The fares would increase within one month because of the rising fuel cost.”
Captain G.R. Gopinath, Chairman and Managing Director of Air Deccan, had also indicated few days ago that the low cost airline would be increasing fares in the range of Rs 500-1,000 in order to turn profitable by early next fiscal.

Mr Siddhantha Sharma, CEO of Spicejet, said, “There are pressures from stakeholders in listed airline companies, whereas others would find it difficult to attract investments unless yields stabilise.”

However, according to some travel industry experts, with the festival season beginning in September-October, airlines traditionally increase fares.

28/08/07 Business Line