Aviation regulator directs airlines to rationalise fares

June 18th, 2012 - 8:45 pm ICT by IANS  

New Delhi, June 18 (IANS) India’s civil aviation regulator Monday directed all domestic airlines to check the exponential rises in air fares, even as demand declined in May by 0.87 percent and stood at 54.48 lakh passengers.

According to the Director General of Civil Aviation (DGCA), the airlines were also directed to have a relook on the route-wise airfares offered in the highest fare bucket, so as to rationalise phenomenally high fares.

“Scheduled domestic airlines have now proposed reduction of airfares in the highest fare bucket on various routes in the domestic network between five percent to 20 percent,” an official statement from the civil aviation ministry said.

“Airlines have been advised to upload the revised tariff sheet on their respective websites.”

The development comes as DGCA director general E.K. Bharat Bhusan convened a meeting with all the chief executives of domestic airlines.

Average airfare of the airlines had grown substantially even though the jet fuel prices had only gone up by 16 percent in June 2012 compared to June 2011.

Huge variation in the highest published airfare by different carriers on the same sector were also noted.

Issue of high seat factor routes tickets being sold cheaper as the date of departure approaches, was also discussed as passengers buying tickets in advance may end up paying more than the passengers buying ticket at a later date.

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