Financial Daily from THE HINDU group of publications
Tuesday, Oct 11, 2005
Financial Daily from THE HINDU group of publications Tuesday, Oct 11, 2005 |
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Logistics
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Airlines Marketing - Strategy Air Deccan to hike fares 15 pc; Re 1, Rs 500 fares to remain Our Bureau
Bangalore , Oct. 10 AIR Deccan has decided to increase its fares by 10 to 15 per cent later this week; but the popular Re 1 and Rs 500 fares will remain untouched. "We plan to increase our fares which are above Rs 3,000 by 10 to15 per cent," the airline's Managing Director, Capt G.R. Gopinath, told a news conference on Monday. The new fares will come into effect in another couple of days. The fares are being increased to offset the rise in aviation turbine fuel (ATF) prices. The fares on its ATR aircraft will also remain unaffected. Capt Gopinath denied that the airline had filed its prospectus with SEBI regarding its IPO. He, however, said the airline will go for an IPO sometime early next year. He was speaking on the occasion of the announcement of selling the airline's tickets on indiatimes Web site. The airline also plans to allow passengers to book tickets from their mobile phones. Capt Gopinath said the decision to leave the Re 1 and Rs 500 tickets out of the fare increase had been taken because they served a specific purpose. "We will absorb the ATF hike for these fares," he said. Nearly 40 per cent of the seats are reserved for low fares. The fares on Air Deccan range between Re 1 and Rs 6,500. This is the first time the airline is raising its fares because of the hike in aviation fuel. Capt Gopinath said the airline will fly 4 million passengers this fiscal, which is nearly 25 per cent of the total number of passengers who flew last year domestically. The airline will add one aircraft every month from next month. By the end of this month, the airline will have 24 aircraft. Air Deccan has 140 flights daily and flies to 34 destinations.
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