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Low-cost airlines welcome Budget

Source: PTI
February 24, 2006 20:10 IST
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Ruling out immediate fare restructuring after the rail budget slashed higher class fares, India's budget carriers on Friday said they were still competitive than the railways.

Welcoming the railway budget, Air Deccan CMD G R Gopinath told PTI that his airline would not anticipate any immediate restructure in fares.

"We are welcoming the railway budget. At present, our fares are 10 to 15 per cent higher than railway AC fares. But we are not going for an immediate restructure in fares as we are competitive than the railways in some other means," he said.

The Railway Budget 2006-07

"The airlines are competitive because we reduce the travel time and thus passengers can save money in other means including accommodation. "We provide connectivity to any place of the country in two to three hours," Gopinath pointed out.

Wadia Group-promoted budget airlines GoAir said it would fix the prices based on their competition.

"Pricing is dynamic in this industry and we will price our flights based on our competition - both other airlines as well as other means of transport like the railways," Jeh Wadia, managing director, GoAir said.

Railway Minister Lalu Prasad has proposed an 18 per cent reduction in AC first class and 10 per cent in AC second class in the Railway budget. The reduction in AC first class and second fares was proposed in the backdrop of growing competition from low cost airlines.

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