Indian air-carriers as yet undecided on fare hike

Last Updated: Wednesday, March 3, 2010 - 23:26

Hyderabad: Indian air-carriers, both
state-run and in the private sector, are assessing the impact
of a ten per cent service tax on domestic air travel, but have
not yet taken a call on whether to pass the burden on to
passengers.

"We are studying the impact and assessing how much we
can absorb," Government-owned Air India`s Chairman & Managing
Director, Arvind Jadhav, told reporters on the sidelines of
the `India Aviation 2010` event here today.

Private carriers too are evaluating the impact of the
hike.

"We are still examining the issue. A decision (on
hiking fares) will be taken at an appropriate time," private
sector Jet Airways` Chairman, Naresh Goyal, said.

The Government has brought domestic air travel under
the service tax regime and imposed a ten per cent tax on
domestic air tickets. The announcement was made while
presenting the Union budget.

No-frills private air-carrier, SpiceJet, is also
adopting a wait-and-watch stance, maintaining it would decide
on a fare hike only after due deliberation.

"We will assess the impact first before coming out
with any decision," its CEO, Sanjay Aggarwal, said.
Vijay Mallya-owned Kingfisher Airlines` spokesperson
also said the carrier would come out with its decision later.

PTI



First Published: Wednesday, March 3, 2010 - 23:26
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