No more cheap air fares if airlines are to survive: Mallya

Mumbai, June 12 (UNI) Kingfisher Airlines chairman Vijay Mallya, recently bought 26 per cent stake in Air Deccan, today said the days of cheap, discounted fares are over and airlines must cover all costs to stay in business.

''Everyone must realise that we're in business to make money.

Air fares must reflect cost components like aviation fuel, airport charges and operational expenses,'' he said.

Mr Mallya said Air Deccan will soon raise fares. Gone are the days to sell tickets below costs. Both airlines have already started with an exercise to rationalise routes.

Kingfisher and Air Deccan now command 30 per cent of market share. Jet Airways and Air Sahara together have 28.5 per cent share while government-owned Indian has 21.5 per cent of the market.

Mr Mallya said he expects Air Deccan, which posted Rs 213 crore rupees in losses for the three months ended March 31, to report profits in the fiscal year that began April 1.

Air Deccan and Kingfisher Airlines are also looking at rationalising their fleet and considering changes in the total fleet order of 90 aircraft, said Mr Mallya while addressing an investors summit organised by the Centre for Asia Pacific Aviation (CAPA).

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