Indian carriers end low fares
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Air travellers in India will now have to pay more as major airlines and low-cost carriers (LCCs) alike said they would withdraw their low base fares.
According to www.livemint.com, Air India, Jet Airways and Kingfisher Airlines have decided to stop the low-fare advance purchase schemes, saying the airfares would now be decided by the market.
But the regular fares and the fuel surcharge were not being touched, the airlines were quoted saying.
Air India, which sold the lowest-priced ticket at INR89 (US$1.80) on certain sectors, would now offer a base fare INR486, plus taxes and fuel surcharge.
The report quoted a Jet Airways spokesman as saying that said the airline “adjusts fares on a regular basis depending on the market conditions”.
A Kingfisher Airlines spokesperson was quoted saying; “We confirm that on flights that can sustain higher revenue, we have closed low fare buckets and are concentrating on selling higher fare buckets.”
According to industry sources quoted, the decision to withdraw lower-level fares was taken as these did not stimulate demand and also in anticipation of a spurt in demand for summer holiday travel.
Sources in LCCs SpiceJet and IndiGo were quoted saying that fares were likely to stabilise in the low INR3,000 range from the current INR2,000 levels.
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