Indian air-carriers as yet undecided on fare hike
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Last Updated: Wednesday, March 03, 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 03, 2010, 23:26


Tag: FARE HIKE
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