Kingfisher license suspension may increase airfares by 10%
New Delhi: Get ready to buy an expensive air ticket this festive season. According to a newspaper report, air fares may go up by as much as 10% from November onwards due to Kingfisher Airlines’ license suspension.
Aviation regulator DGCA on Saturday suspended the flying license of the beleaguered airline company.
During the festive season, aviation industry sees a huge demand and with Kingfisher not in the market, low-cost carriers are likely to take advantage of the situation.
"The coming months would see fares rise slightly as it is the holiday season. But if one is to consider the impact of KFA's withdrawal from the market, airlines like Jet and Air India will not really benefit from the situation as their fares are already in the higher bracket. The low cost carriers will then have a window to increase fares," The Times of India quoted an aviation expert as saying.
Southern air routes like Mumbai-Bangalore, Bangalore-Chennai, Bangalore-Goa etc, where Kingfisher had been more active, are more likely to see fare hike.