Airlines may pass burden on to passenger with fare hike

While Indias largest private carrier Jet Airways echoed similar views,the airline denied that the issue of fare hike was discussed at the meeting under the banner of the Federation of Indian Airlines today. We didnt discuss fares at the meeting. However,we discussed the problems of service industry with the minister, said Jet Airways chairman Naresh Goyal.

Airlines requested civil aviation minister Praful Patel to take up the issue with the finance ministry for withdrawal of the service tax and 5 per cent customs duty,which the minister said would be taken up soon. I will make a request to the finance minister for withdrawal of the service tax, said Patel.

Low-cost carrier Spice Jet made it very clear that in all probability the financial impact of the twin measures would be passed on to flyers. I believe the service tax will be levied by June which is when our fares will also be hiked, said SpiceJet chief operating officer Samyukth Sridharan.

Meanwhile national carrier Air India chairman and managing director said that they would try to avoid fare hikes if they can absorb the impact. Owing to slowdown and high fuel costs last year,airlines came under tremendous strain as premium traffic plummeted and yields were considerably impacted.