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India Airline Business Update: Airfares expected to rise in October
As per latest media reports, almost all Indian airlines are planning to increase airfares in range of 8-15% for different routes. The airlines are expecting higher numbers due to festive season and feel that it will be the right time to get better margins.
Indigo has started international flights. The company expects to get good response for its low cost flights to UAE. In September, the company has started with Delhi - Dubai route. The company is planning to add Singapore, Bangkok and Muscat as next destinations.
Air India has reported that the national carrier has managed to generate profits during the month of July for its US operations. The troubled carrier has been looking for help from Indian government to meet its working capital requirements.
Indian low cost carriers have been working on expansion plans. Most local carriers are increasing capacity as they are expecting passenger numbers to soar in coming months. SpiceJet has planned major expansion. Indigo has also increased fleet size and will soon be adding more routes. The airline placed an order for 180 Airbus Aircrafts earlier this year.
Kingfisher has been in news for wrong reasons. The airline has been struggling with debt and low margins for past few quarters.
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