Tag: Ticket Cancellation Charges

Centre ,Taking U Turn, Denies Capping of Airfares

[New Delhi], Centre ,Taking U Turn, Denies Capping of Airfares
Civil Aviation Minister Ashok Gajapathi Raju Exhibiting this U Turn, said restricting the airfares will not make good business sense as it could also jeopardise the government’s regional connectivity plan as such a move may discourage airlines to fly on non-profitable routes.
He, however, said a slew of passenger-centric measures including “time-bound” grievance redressal mechanism would be unveiled very soon, emphasising that India’s civil aviation market was the fastest growing in domestic passenger travel demand.
It is expected that the government was going to announce steps to rationalise the ticket cancellation charges and they are likely to be capped around the base fare, as against current exorbitant fees, as part of passenger-friendly initiatives.
The Minister said at least 32 airports built by Airport Authority of India at a cost of at least Rs 3,000 crore over the years were lying “unconnected” and putting any restriction on market-driven fares may jeopardize government’s plan to start flight services to those airports.
Holding that putting a cap on airfares may have an adverse impact on growth of aviation sector, Raju said his Ministry keeps a “continuous tab” on price movements to ensure that the rates are under check.
His comments come at a time when the government is discussing ways to address issues related to steep fluctuations in airfares, especially during peak seasons and natural calamities.
Minister of State for Civil Aviation Mahesh Sharma last month had announced that capping of fares will be announced soon.
India’s domestic aviation market has clocked a growth rate of 22%in the last one year, the highest for any country. .

SpiceJet,Following Indigo,Hikes Ticket Cancellation Charges

[New Delhi] SpiceJet,Following Indigo,Hikes Ticket Cancellation Charges
Another Budget Carrier Spice Jet also Hikes Ticket Cancellation Charges
Budget carrier SpiceJet has also increased its ticket cancellation charges by over Rs 350,
IndiGo Has already announced a flat charge of Rs 2,250 even as the DGCA deadline for airlines to submit their response on the issue ended today.
The revised charges for cancelling a domestic ticket now stands at Rs 2,250 while for an international air ticket, it is fixed at Rs 2,500, SpiceJet said in a communication to travel agents.
The new cancellation charges are effective from April 7,
Significantly, the move comes amid the civil aviation regulator–Directorate General of Civil Aviation (DGCA)–seeking an explanation on the reasons for a flat cancellation fee and a body of air passengers Air Passengers Association of India (APAI) threatening to approach fair trade regulator, CCI for an investigation into the alleged cartelisation.
The Gurgaon-based airline had earlier been charging a fee of Rs 1,899 for cancelling a domestic ticket and Rs 2,349 for an international air ticket.
Most of the domestic carriers, including IndiGo, had increased the cancellation charges by a significant amount in February.
DGCA had written to the airlines, including the regional ones, asking them to explain the reason for increasing ticket cancellation fee, which in some cases now is almost equivalent to the air fares charged for a short-haul journey.
IndiGo had done away with the slab system in cancellation fee and announced a flat charge of Rs 2,250.
The aviation regulator had asked the airlines to file their response by today.