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Rediff.com  » Business » Airlines on ministry's flight path; maximum fares descend 10-50%

Airlines on ministry's flight path; maximum fares descend 10-50%

By BS Reporter
December 09, 2010 10:33 IST
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An aircraftAfter a severe reprimand and threat of action by the civil aviation ministry, low-cost carriers have fallen in line.

According to the new fare list posted on their websites on Tuesday, their maximum fares have been reduced by between 10 per cent and 50 per cent.

However, the maximum fares of full-service carriers in business class have increased by an average of 10 per cent in the new list. 

Last week, after a direction from ministry, airlines provided the maximum fares they would charge based on distance travelled.

These fares -- on routes like Delhi-Bengaluru, they were as high as Rs 40,000 one way -- were rejected by the government.

On Monday, the Directorate General of Civil Aviation directed all airlines to provide route-wise and date-wise fares, as well as different category of fares in their websites once a month.

They were also warned of action against any huge increase.

The maximum fare between Delhi and Mumbai on SpiceJet has dropped 29 per cent from its previously declared figure to Rs 14,199.

For IndiGo, the fall on the same route is a much less 12 per cent to Rs 15,000.

Fares between Delhi and Bangalore aboard IndiGo have also come down by 22 per cent to Rs 18,000. SpiceJet's maximum fare on its Delhi-Hyderabad route fell by a steep 50 per cent from to Rs 12,999.

In the FSC space, where data of only business class can be compared, the maximum fare for an Air India flight between Delhi and Mumbai, according to the new list, is up 12 per cent to Rs 22,663.

The Delhi-Bengaluru sector sees maximum fares increase from Rs 30,810 to Rs 31,753.

Likewise, Kingfisher Airlines hiked its maximum business class fares by around 9 per cent.

Responding to the new fares, a ministry official said: "We have issues in the way the tariff structure has been placed on the websites, as it can be confusing to passengers. The ministry will take up the matter with the airlines."

"The maximum figures shared by the airlines are ridiculous and totally impractical. Who will pay Rs 15,000 to fly a low-cost carrier unless it is an emergency?

"Also, the airlines have mentioned the number of seats they have allocated for every fare bracket, which means it can be manipulated," said Air Passengers' Association of India president Sudhakara Reddy.

However, representatives of the travel industry say the fares are based on demand and supply.

"The maximum fares posted by airlines are only indicative. The fares will reach this peak only rarely, like on Diwali or Christmas.

"Most times, fares will remain under control, as people will stop flying if fares are so high," said Dhruv Shringi, co-founder & CEO of travel portal Yatra.com.

The civil aviation ministry is analysing the fares and any discrepancy will be looked into and action taken, stated a release from the ministry.

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BS Reporter in New Delhi
Source: source
 

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