Search the Internet          Tips  Sites: Finance, Investment

Indian Airlines introduces flexible fares; hikes fares up to 15%

After maintaining its fares at the same level for almost three years, Indian Airlines on Friday announced a hike in its fares by upto 15 per cent to match the private carriers.

The revised fares would be effective from May 25, the airline said, adding that "flexible fares" were being introduced on 68 of its 165 domestic routes.

Announcing the decision, the airline spokesman said the "flexible fares" policy implied that the hike in airfares would vary from sector to sector and on season to season basis.

The fares would from now onwards be determined broadly by the market size, market share, price sensitivity and service-related factors, he said.

The IA also introduced special lower fares on the Bombay-Delhi-Bombay and Bombay-Bangalore-Bombay routes for certain designated flights, besides offering lower fares on early morning flights on the Bombay-Delhi and special day return fares on the same route.

The spokesman said there was no change in the tickets issued on US dollar fares.

All tickets issued on or after May 25 would be as per the revised fares. But tickets issued before that day, which have been partly utilised before that date, will be valid for travel at the pre-revised fares, the spokesman said.

However, in case of tickets purchased at the pre-revised fares, the difference in fares would have to be paid by the passengers for journey commencing on or after May 25, he said.

The domestic carrier, which had last raised its fares in October 1998, had not resorted to fare hike when private operators Jet Airways and Sahara Airlines had increased them last September, despite a hike in the aviation turbine fuel prices.

The IA had claimed that the low fares primarily was responsible for a substantial increase in its passenger load factor in the last winter.

Under the revised fare structure, a passenger travelling between Delhi and Bombay would have to bear an additional burden of Rs 680 in the Executive Class and Rs 455 in Economy.

Similarly in the Delhi-Madras sector, the hike has been Rs 1140 and Rs 760 and in Delhi-Calcutta route, the increase will be Rs 795 and Rs 530 respectively.

The day return fare in Delhi-Bombay sector was Rs 15,360 in 'Y' class and Rs 10,375 in 'J' class, while the early morning flight fares in the same sector are Rs 7680 and Rs 5185 respectively.

Tell us what you think of this report