The Hindu Business Line : Air India fares may go up by 5%

Official sources said the proposal to hike fares has been filed with the Director-General of Civil Aviation (DGCA) although no approval has been given as yet by the regulator.

"AI has proposed a five per cent increase in the DGCA fares to various destinations from India. However, we have not yet received permission to effect any changes in the fares," the AI officials said. The hike, as and when approved, will come into effect immediately.

Meanwhile, the Minister for Civil Aviation, Mr Syed Shahnawaz Hussain, has approved a proposal for leasing two more Airbus A-310 aircraft for the airline. The proposal was accepted at a review meeting that the Minister held with the heads of the various departments of the airline in Mumbai on Wednesday.

The induction of the two aircraft will see AI offer new flights, including operating on the Lucknow-Jeddah sector and increasing the number of flights between Delhi-Singapore, India-Gulf and West Asia.

During the review meeting, Mr Hussain also approved the business plan of the airline, which incorporates a growth in capacity amounting to about 20 per cent over the previous year.

The AI officials said the past few months have been good for the airline, with the Maharaja registering a passenger seat factor of close to 80 per cent in the last three months.

In a statement, AI said the performance in the past few months has been the airline's best in recent years despite sluggish tourism arrivals and fear of war in the neighbourhood.

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