7-8% increases to reflect greater costs (240 words)

Published: 10/5/2000

Sibir has increased several restricted economy class tariffs to Moscow from Novosibirsk, Tomsk, Kemerovo, and Barnaul. The 7-8% increases on the 1st of October follow the last increases that took place in December 1999. The most popular tariff among Sibir passengers called excursion tariffs was however only by 5% and the full economy fare remained unchanged. The reasons cited by the Novosibirsk carrier for the rises are the increases in fuel prices, airport service charges and higher inflight food costs. Sibir also makes the charge that they are incurring costs above the average for most airlines. Claiming that some of the airports they operate from have substantially higher charges than the average for Russian airports, Specifically cited was Kemerovo Airport that according to the airline charges 30% more for airport service than average, Tomsk Airport s also mentioned as charging more for fuel, and on-board food for passengers. Sibir also said that the have recently also been notified that the Russian Air Navigation Service intends to gradually increase its navigation charges. Increases that will directly feed into higher flight costs. Despite the increases, according to Sibir, the new ticket prices do not fully reflect the rises in costs for the airline, which exceed 8%, and will have to be covered by greater efficiency on the part of the airline and from other unnamed revenue sources. The airline feels that any attempt to make increases fully reflect costs would result in reductions in passenger volumes.

Article ID: 2111