M A I N   N E W S

Domestic air travel costlier
By Prabhjot Singh
Tribune News Service

CHANDIGARH, Oct 14 — Domestic air travel has become costlier now. While management of Indian Airlines and its feeder airline, Alliance Air, are still contemplating for a 15 per cent hike in domestic air fares, some of the private airlines, including Jet Airways and Sahara, have already hiked fares.

Indian Airlines has incurred a loss of Rs 95 crore during the first six months of the current financial year. In case, the management allows 15 per cent hike in domestic fares, this loss could be neutralised in the remaining period of the year.

The management of Jet Airways has hiked domestic air fares by 10 per cent. For example, the fare from Chandigarh to New Delhi has been increased from Rs 2125 to Rs 2325. Similarly the point to point fare from Chandigarh to Mumbai has been raised from Rs 6675 to Rs 7325.

Similarly, Sahara has also hiked its fares by 15 per cent to bring them on a par with the existing fares of Indian Airlines and Alliance Air.

It may be recalled here that there had been a price war in air fares initiated by some private airlines, including Sahara, some years ago. Sources in the aviation industry maintain that though airlines are going to hike domestic air fares, the price war would continue because of continuous drop in passenger load factor.

The management of Alliance Air had late last year announced special packages reducing both point to point and sector fares considerably. The package continued until end of August this year. Compared to Jet Airways, the fares offered by Alliance Air, were substantially low.

But failure to maintain sanctity of schedule did not improve the passenger load factor of Alliance Air from stations like Chandigarh, Amritsar, Ahmedabad and other stations.

Though Jet Airways decided not to react to these packages, its passenger load factor has improved.

Recent hike in fuel prices and introduction of uniform floor rate of 20 per cent sales tax on petroleum products, including aviation fuel, necessitated increase in domestic air fares.

This year it is being considered a lean year for domestic air travel industry as overall passenger traffic has come down to 40 per cent.

The airlines are now pinning their hopes on the festival season ahead which may well continue until new year. They hope to turn around and put losses behind by expecting improvement in passenger load factor.