Domestic air fares to rise from Thursday

Domestic air fares of major carriers are likely to be increased from Thursday and the number of low-fare tickets could be slashed as airlines attempt to cut costs and contain losses.

Though no airline officially confirmed the move this evening, it is understood that a decision to this effect was taken at the last meeting of the newly-formed Federation of Indian Airlines (FIA), an organisation representing all major domestic carriers, earlier this month. While major airlines are likely to hike fares by 3-5 per cent from November 16, state-owned Indian is contemplating charging a flat Rs 200 more per ticket for alimited period. The charge would be levied during the peak time rush from December one to January 31, industry sources said.

They said the number of low-priced tickets available on each flight was also likely to be reduced as a cost-cutting measure. Due to heightened competition from low-cost carriers, the full-frill airlines have been selling tickets at as much as 60 per cent below the original fares. The industry body had earlier deliberated on the issue of reducing airfares, but without any consensus on the issue. Low-cost airlines, which are also represented on FIA, had opposed a further hike in fares, saying fuel costs had come down and there was no justification to raise fares. However, the carriers had agreed in principle not to charge fares below a certain level as that would adversely affect their financial bottomline.

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