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Marketing tie-up: Ms Kang Siew Kheng, Regional Director, South Asia Middle East and Africa, Singapore Tourism Board, flanked by Mr Kenneth Lim (right), Area Director, Northern and Eastern India, and Mr A.K. Tirkey, Commercial Manager, Eastern India, Air India, at a press conference in Kolkata on Friday.

Our Bureau

Kolkata, Aug. 1 Air India Express, the no-frills airline of Air India, is mulling hike in fares by 10-15 per cent during the festive season this year following the jet fuel price hike, according to Mr A.K. Tirkey, Commercial Manager, Eastern India.

While the fares for long-haul flights of Air India may rise by 5-7 per cent during October-November, the hike in short-haul fares is expected to be more, he told reporters at the sidelines of a conference to announce a marketing tie-up with the Singapore Tourism Board (STB) here on Friday.

“All airlines are contemplating a hike in fuel surcharge and we might have to do the same depending upon the market demand,” he said.

The long-haul flights to places such as London and the US might see a smaller hike in fares, he said, since such flights can draw advantage from lower operating costs.

Air India is taking measures to lower costs by buying 19 new fuel-efficient aircraft of the Boeing 777-300 and Boeing 777-400 series, he added.

The load factor or the percentage of occupied seats for Air India Express flights to Singapore is nearly 70 per cent currently. The tie-up with STB is expected to boost occupancy to 90 per cent, he said.

Mr Kenneth Lim, Area Director, STB, said the joint marketing collaboration in the Eastern India would also look at tapping the tier two markets such as Bhubaneswar, Jamshedpur and Jharkhand.

The growth of tourists from Kolkata to Singapore, at 15.6 per cent during the first half of 2008, was one of the highest from the country, he added.

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Air India Express plans to hike fares by 15%

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