Air fares set to rise 3%-5% Thursday

New Delhi: Full service carriers Indian Airlines, Jet Airways, Kingfisher Airlines and Air Sahara have decided to hike their fares by 3%-5% from Thursday. The low-cost carriers (LCCs) are expected to follow suit in the next 2-3 weeks.
Not only the airlines are planning to increase fares, but also plan to reduce the number of tickets being sold at lower fares under various promotional schemes.
The move to raise fares now is seen as an effort to rationalise prices. The decision was taken at the meeting of the newly formed airlines' body, Federation of Indian Airlines (FIA). The next meeting of FIA is scheduled for November 16.
Though most of the airlines declined to comment on the proposed fare hike, Indian Airlines confirmed about an imminent rise to FE. Indian plans to raise fares by Rs 200 on all sectors during the peak winter season between December and January.
15/11/06 Financial Express

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