ibnlive » Business

Nov 15, 2006 at 07:54am IST

Major airlines to hike fare by 3-5%

New Delhi: Those low airfares you enjoyed due to cut-throat competition between airlines may soon be over. Airline companies are coming together to hike fares.

In what airline industry sources are calling cartelisation, companies under the Federation of Indian Airlines have agreed to hike fares by 3 per cent to 5 per cent.

The Federation includes Indian Airlines, Air India, Jet Airways, Kingfisher, Air Sahara, Air Deccan, GoAir, Indigo, Spice Jet and Paramount Airways.

Sources in the aviation industry said that most domestic airlines have agreed to the fare increase, which will be introduced in phases over the next few weeks.

Kingfisher and Air Sahara denied any such move. Low cost airlines have resisted fare hikes earlier, but they too are likely to follow in the next couple of weeks.

Public carrier Indian has confirmed it’s increase fares. "Everybody is increasing fares. We too may increase our fares marginally," said Vishwapati Trivedi, MD of Indian.