Kingfisher Airlines and Jet Airways may cut fares by January 2009

Kingfisher Airlines and Jet Airways are contemplating another round of fare cuts. After reducing fuel surcharge by Rs 550 per ticket last month, both airlines are likely to reduce basic fares by Rs 600 per ticket next month. According to a report in today’s Economic Times (ET), industry sources informed that Kingfisher Airlines has called for a meeting on December 20, 2008 to discuss the exact amount of fare cut. Vijay Mallya, Chairman of Kingfisher Airlines and all top officials are expected to attend the meeting. Jet Airways which has an operational alliance with Kingfisher Airlines, may also take a similar decision.

A Kingfisher Airlines spokesperson said, “I don’t want to comment anything on fares at this juncture. But a meeting has been called to discuss on airfares this week. If any fare cut decision has to be taken, the company will inform its customers of the same at the right time.” A Jet Airways spokesperson denied any such plans contemplated by the company. “No decision on fare cut has been taken yet. Moreover, the government and ministry cannot impose on Jet Airways as it’s an internal company matter,” added Jet Airways spokesperson.