In view of the sudden spurt in airfares in the recent past on the domestic network, EK Bharat Bhushan, Director General of Civil Aviation, Directorate General of Civil Aviation (DGCA) today convened a meeting with CEOs of the scheduled domestic airlines. According to a PIB release, Bhushan expressed concerns on the exponential increase in airfares of certain airlines on various domestic sectors.
He said that the increase in average airfare offered by the airlines is phenomenal, although the Aviation Turbine Fuel (ATF) prices have gone up by only 16 per cent in June 2012 as compared to June 2011. Bhushan believed that there is a huge variation in the highest published airfare by different carriers on the same sector. The Director General said that airfares do not show increasing trend with the date of departure. However, fares of higher inventory are opened and then lowered as the date of departure approaches. This, he said may result into passengers buying tickets in advance paying more than the passengers buying later. He also believed that passenger traffic has seen a downward swing in May 2012 over the corresponding period of last month, but the airfares have seen a disproportionate spurt. Bhushan has directed airlines to address the above issues in a time bound manner. Airlines have also been directed to examine the route-wise airfares offered in the highest fare bucket and make an attempt that the maximum airfares are reasonable. The airlines have reassured the Director General that they will examine the airfares offered in the highest fare buckets. Scheduled domestic airlines have proposed reduction of airfares in the highest fare bucket on various routes in the domestic network between 5 to 20 per cent. The Director General has advised airlines to upload the revised tariff sheet on their respective websites.
Click here to see the original article>He said that the increase in average airfare offered by the airlines is phenomenal, although the Aviation Turbine Fuel (ATF) prices have gone up by only 16 per cent in June 2012 as compared to June 2011. Bhushan believed that there is a huge variation in the highest published airfare by different carriers on the same sector. The Director General said that airfares do not show increasing trend with the date of departure. However, fares of higher inventory are opened and then lowered as the date of departure approaches. This, he said may result into passengers buying tickets in advance paying more than the passengers buying later. He also believed that passenger traffic has seen a downward swing in May 2012 over the corresponding period of last month, but the airfares have seen a disproportionate spurt. Bhushan has directed airlines to address the above issues in a time bound manner. Airlines have also been directed to examine the route-wise airfares offered in the highest fare bucket and make an attempt that the maximum airfares are reasonable. The airlines have reassured the Director General that they will examine the airfares offered in the highest fare buckets. Scheduled domestic airlines have proposed reduction of airfares in the highest fare bucket on various routes in the domestic network between 5 to 20 per cent. The Director General has advised airlines to upload the revised tariff sheet on their respective websites.