Air Deccan set to increase fares to cut losses

UB Group recently bought a 26 per cent stake in Deccan Aviation and the head of the company Vijay Mallya has now said that Air Deccan would have to increase their fares to cut the losses and become a profitable venture.

The fares could be increased by as much as Rs. 500 per ticket. Mallya said: “I do not believe in low-cost operations and running at losses and for that if fares have to go up so be it.”

He added: “Deccan is going to raise prices and be profitable.” Incidentally Mallya already owns another airline company Kingfisher Airlines.

Mallya further said that the ticket prices should include exact costs, including ATF and congestion charges and Air Deccan can cover these costs while still remaining competitive in the market.

He said: “While Air Deccan Founder Captain Gopinath has defended his model, I told him that you have to ensure that you reap the due benefits. I am of the sincere opinion that any other carrier would not indulge in discounting money.”

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