Indian air-carriers as yet undecided on fare hike
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
"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
"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.