Airfare hike to lead to cartelisation within industry

The low airfares you enjoyed due to the cut throat competion between the airlines may be now over. Airline companies are coming together this time to hike fares. CNBC-TV18 reports that analysts fear that this could lead to cartelisation within the industry.
It's the first signs of the Indian aviation industry headed towards price cartelisation. Civil Aviation sources say that airlines under the Federation of Indian Airlines is looking at increasing fares by 3-5%. This is to be introduced in a phased manner independently by the airlines. Public Carrier Indian has confirmed the fare increase.
"We may have to hike fares nominally," said Vishwapati Trivedi, MD, Indian.
Sources in low cost airlines like Air Deccan and Spicejet have also confirmed a nominal fare increase for the winter. The season starting December is good for the airlines as there is increased demand.
15/11/06 Moneycontrol.com

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