Air India is ranked fourth in terms of market share, but by virtue of its strong hold in terms of routes it serves and the number of aircraft at its disposal, the national airline is still able to dictate pricing trends in the domestic sector; so the new management is not afraid of losing passengers due to fare hikes.
\\\"If the fuel prices go up further, the carrier will not shy away from passing costs on to the passengers,\\\" Nandan told ET. Nandan is emboldened by the high loads that the airline has witnessed in the past few months, in spite of expensive air tickets. \\\"If we don\\\'t pass on fuel costs, we won\\\'t break even,\\\" reasoned Nandan when asked if the carrier could increase ticket prices further.
Air India and its peers have gained considerably from Kingfisher Airlines\\\' financial trauma, which forced Vijay Mallya-promoted airline to ground most of its 60 odd aircraft, barring 11 that still fly. Last Monday, Air India hiked fuel surcharge by Rs 150 on domestic flights of up to 1,000 km and by Rs 250 for longer ones. It hiked fuel surcharge for international flights by $15 for a one-way ticket and by $30 for return tickets.
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