Airlines attract attention as fare hike likely
Airliners surged on reports that they will hike airfares soon.
Jet Airways (up 4.40% to Rs 661), Deccan Aviation (up 10.65% to Rs 119.50) and Spicejet (up 6.21% to Rs 47.90) advanced.Low cost airlines are said to follow suit. The hike will be executed in a phased manner over the next few weeks. The four big airlines have jointly decided to hike airfares by 3 - 5%, while low cost carriers may see 5 - 7% hike.
Reports also add that the number of low-priced tickets available on each flight, is also likely to be reduced as a cost-cutting measure. The move to raise fares now is seen as an effort to rationalise prices. This 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 16 November 2006. Domestic seat capacity has increased by almost 40% in 2005-06, much faster than the 28% rise in passenger traffic.Most airlines have suffered major losses due to high fuel prices this year. The aviation sector is estimated to post losses to the tune of Rs 2,200 crore in the current fiscal.
Largest low-cost carrier Air Deccan has recorded a loss of Rs 340 crore for 15 months ended June 2006.SpiceJet had reported a net loss of Rs 240 crore for the year ended May 2006.Jet Airways, the largest private sector carrier, also recorded a loss of Rs 55 crore in the second quarter of 2006-07.
Jet Airways (up 4.40% to Rs 661), Deccan Aviation (up 10.65% to Rs 119.50) and Spicejet (up 6.21% to Rs 47.90) advanced.Low cost airlines are said to follow suit. The hike will be executed in a phased manner over the next few weeks. The four big airlines have jointly decided to hike airfares by 3 - 5%, while low cost carriers may see 5 - 7% hike.
Reports also add that the number of low-priced tickets available on each flight, is also likely to be reduced as a cost-cutting measure. The move to raise fares now is seen as an effort to rationalise prices. This 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 16 November 2006. Domestic seat capacity has increased by almost 40% in 2005-06, much faster than the 28% rise in passenger traffic.Most airlines have suffered major losses due to high fuel prices this year. The aviation sector is estimated to post losses to the tune of Rs 2,200 crore in the current fiscal.
Largest low-cost carrier Air Deccan has recorded a loss of Rs 340 crore for 15 months ended June 2006.SpiceJet had reported a net loss of Rs 240 crore for the year ended May 2006.Jet Airways, the largest private sector carrier, also recorded a loss of Rs 55 crore in the second quarter of 2006-07.
posted by SY at 4:58 PM
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