| Cost of Airlines may increase, no more low-cost travel. |
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As all the major airlines in India are merged together, then we can expect less competition among them. Then this can lead to fixing fares among them. Further which will lead to increase in price because of less competition and may avert the losses which aviation industry is going through. This means no more low cost tickets will be issued in near future. According to Vijay Mallya one who runs kingfisher airlines said that "We will no longer sell tickets at a loss. But that does not mean there will be any immediate fare hike." "Because of greater efficiency, we will be able to price our tickets higher," said Air Deccan Managing Director GR Gopinath. SpiceJet airlines have given out over 2 lakh tickets worth 99 paise each in previous months. With such low fares, that have meant a loss of Rs 400 to Rs 650 per passenger per flight. Also SiceJet airlines CEO Siddartha Sharma said "Consolidation is good for the industry. Now no one will operate under-cost," Because of this combining of airlines, this will end cutting of prices, but passengers will get better services only at a higher cost.
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