Mumbai: Air Deccan may increase airfares by Rs 500 to stop losses, said UB group chairperson Vijay Mallya, who has bought a 26 percent stake in the low-cost airline.
"I do not believe in low-cost operations and running at losses and for that if fares have to go up so be it," Mallya told reporters at an aviation conference on Tuesday.
"Deccan is going to raise prices and be profitable," said Mallya, who heads Kingfisher Airlines and paid Rs 550 crore for the stake in Deccan.
“Gone are the days when they (low-cost airlines) sold low-cost tickets to gain market share. Air Deccan has huge connectivity and I believe only Rs 500 more would make it profitable.”
" Air Deccan founder Captain G R Gopinath has defended his model, (but) I told him that you have to ensure that you reap the due benefits. I am of the sincere opinion that any other carrier would not indulge in discounting money."
A Reuters report said Mallya wants Kingfisher to focus on large cities and long-haul routes and Deccan on smaller cities in India and routes to the Middle East, South Asia and Southeast Asian countries.
Mallya said he had spoken to Gopinath about the need to raise airfare. "They only need to charge 500 rupees a ticket more to be profitable," he said.
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