The Hindu Business Line : Kingfisher Airlines plans to hike fares from July

Its President and Chief Operating Officer, Mr Alex Wilcox, told Business Line that the three-tiered fare structure would be increased from July. He did not say how much the fares will be increased. Though the Rs 2,999 fare between Bangalore and Mumbai will continue to be available, the number of seats allotted for this special trial fare will be reduced over a period of time. "There will be fewer seats available for this fare," Mr Wilcox said.

Kingfisher Airlines will perhaps be the only domestic carrier to increase its fares at a time when others are reducing their fares. Mr Wilcox said Kingfisher Airlines had drawn an extremely good initial response with the passenger load factor touching over 80 per cent. An aviation analyst said that with the country's domestic airline growing at 25 per cent per annum, the market can absorb higher fares and hence there is no need to reduce fares to match the competition.

Air Deccan recently announced fares at Re 1 while Spicejet said some of its seats will be offered at Rs 99.

Kingfisher Airlines, launched on May 9, had come out with fares which were at least 35 per cent lower than that of Indian Airlines and Jet Airways. Within a few days of its launch, it reduced fares for the Bangalore-Mumbai sector further to Rs 2,999 as a promotional offer.

The airline began its operations with a double daily service in both directions on the Bangalore-Mumbai sector and was subsequently increased to three times a day.

It has a three-tier fare structure. The lowest fare starts at Rs 3,900 for the Bangalore-Mumbai sector and the next highest at Rs 4,900 and the highest at Rs 5,900. About 30 per cent seats are reserved for the first and the second set of fares and the rest for the highest priced fares. On the Bangalore-Delhi sector, it has priced the first slab at Rs 6,900, the next at Rs 8,900 and the highest at Rs 10,900.

The airline has ordered for 30 new Airbus A320 aircraft with a list price of $1.8 billion and plans to add one A320 every month from June.

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