Zeenext Bureau
MUMBAI, Aug 27: The Indian Airlines (IA) board, which is meeting in the national capital on Aug 29, is likely to consider a fare increase.
"Though the issue of fare increase is not listed on the agenda, officials feel that a fare hike is imminent due to raising global oil prices. No methodology has been worked out but it could be pegged at 15 per cent," an IA official has said.
After the crash of an Alliance Air Boeing 737-200 at Patna, "things have not been so good", with a fall in load factor as well as rise in costs of aviation turbine fuel since April 2000, he added.
In July, the airline suffered a loss of Rs 30 crore, while the fuel bill alone was up by Rs 10.5-crore per month. Private airlines like Jet Airways and Sahara Airline are waiting for IA to decide on the fare hike.
The board will also discuss the issue of purchasing three of Air India's Airbus A-300 B-4 aircraft, which have been put up for sale. Besides, IA plans to dry lease five aircraft — three Boeing D-737 200 for Alliance Air and two A-320s for IA.
The airline is trying to negotiate for the 737s, which are 12 years old, for induction over a two-year period.
"We have pilots to operate only this type of aircraft and hence the need to dry lease them till a final decision is taken to replace the fleet," the official said.
