Mumbai/New Delhi: Domestic air travel could become more expensive despite a fall in the global prices of crude. On Saturday, the Chief Executive Officer, Jet Airways, Mr Wolfgang Prock-Schauer, said that with the airline industry reporting huge losses, it might not be the correct time to lower fares just yet.
“The industry will have to see how oil is priced in rupee terms and also look closely at the effect of Indian currency vis-À-vis other international currencies. Generally, I can say that there is discrepancy in the price that oil companies ask for and what they should be asking.
“Therefore, the room to manoeuvre as regards pricing of air tickets is limited. If there is a marginal decrease of say up to 5 per cent in prices of aviation turbine fuel, the industry is unlikely to be able to pass this on to the customer. An increase in fares is possible if fuel does not come down significantly,” Mr Prock-Shauer told newspersons at a function to launch daily flights between Delhi and Dubai.
In Mumbai, the Chief Commercial Officer, Mr Sudheer Raghavan, said that Jet Airways will raise fares wherever there are very high load factors and where fares were not as high.
Speaking on the airline international expansion plans, the CEO said that Jet Airways plans to launch a daily flight between Thiruvananthapuram and Muscat shortly, apart from starting a daily flight between Bangalore and Brussels.
23/08/08 Business Line
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