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Tag: Rationalisation of Airfares by Airlines

Govt Mulling To Regulate Air Fares In Jat Stir Like Crisis

‘[New Delhi]Govt Mulling To Regulate Air Fares In Jat Stir Like Crisis
Govt Now Can Request Airlines to Lower Fares in Such Crisis
Asserting that globally air fares are “unregulated,” Union minister Dr Mahesh Sharma today said the government can only request airlines to keep their ticket prices low during an extraordinary situation such as the ongoing Jat quota stir in Haryana.
The Minister of State for Civil Aviation also said the government has immediately stepped in and instructed airlines to mount additional capacity as a measure to keep air fares under control in view of the agitation.
He was responding to a question on reports that some airlines were “overcharging” and that some travel portals were exhibiting fares as high as Rs 89,000 for a flight to Delhi from Chandigarh.
“It was brought to my notice that tickets are being sold at high prices.
The ministry immediately contacted all airlines including national carrier Air India and requested them to increase the number of flights (to keep the fares under control,”
Sharma told reporters on the sidelines of a tourism event here.
Domestic carriers including Air India operated additional flights to Chandigarh, Amritsar and Jaipur to enable people reach their destinations, who were stuck due to the rail and road transport services coming to halt due to agitation.
Sharma said the carriers responded “positively” to the Civil Aviation Ministry’s request for additional flights with Air India even keeping its ticket prices below Rs 4,000.
On the fares issue, he, however said,
“Since globally air fares are not regulated, we can only request and suggest (domestic)
airlines to keep fares low in a situation like this (agitation).
Govthas many time Walked Away From the Responsibility Of Air Fare Fixation
Minister of State for Civil Aviation, Dr. Mahesh Sharma him self in a written reply to a question in the Rajya Sabha Showed This Inability
Minister Informed The Parliament That Air fares are not fixed by the Government as they are determined by the airline based on interplay of market forces.

Govt Once Again Walk Away From Responsibility Of Air Fare Fixation

[NewDelhi]Govt Once Again Walk Away From the Responsibility Of Air Fare Fixation
Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply to a question in the Rajya Sabha Showed This Inability today.
Minister Informed The House That Air fares are not fixed by the Government as they are determined by the airline based on interplay of market forces.
Airlines are free to fix reasonable tariff having regard to all relevant factors, including the cost of operation, characteristic of service, reasonable profit and the generally prevailing tariff.
Scheduled airlines offer different fare buckets for each flight. The airline pricing runs into multiple levels buckets or Reservation Booking Designator (RBD) which are in line with the practice followed globally.
He Said ,However, in order to prevent excessive charging and sudden surges in airfares and to promote transparency by scheduled domestic airlines, Directorate General of Civil Aviation (DGCA) has issued Air Transport Circular 2 of 2010 wherein airlines are required to display on their respective websites the tariff sheet route-wise across their network in various fare categories and the manner it is offered in the market. The intention behind the above directions is to keep the passengers informed of pricing pattern of airlines.
DGCA has set up a Tariff Monitoring Unit in 2010 that monitors airfares on certain routes selected on random basis to ensure that the airlines do not charge airfares outside the range declared by them. The random analysis has shown that the airfares remained well within the fare bucket uploaded by the airlines on the respective websites.