Flash your fares on your websites: DGCA to airlines

DGCA had earlier issued a directive to private airlines asking them to explain high fares

PTI | December 6, 2010



Aviation regulator DGCA today directed all Indian carriers to show route-wise and date-wise airfares on their websites by Wednesday evening and ensure transparency so that flyers do not feel cheated by high ticket prices.

A fresh directive was issued shortly after top officials of the civil aviation ministry and the directorate general of civil aviation met representatives of full-service carriers -- Air India, Jet Airways and Kingfisher.

DGCA had met officials of the no-frill carriers IndiGo, Spicejet and GoAir, on Saturday after issuing a directive asking all carriers to explain the high fares they were charging.

In order to maintain transparency in tariff and enable predictability for customers, all scheduled domestic airlines have been directed to "upload the route wise tariff across its network in various fare categories commensurate with date of purchase on their respective websites, in addition to adhering to the directions issued on November 19", the directive said.

All airlines have agreed to comply with the directive that has to be implemented "latest by 1700 hrs of December 8", an official spokesperson said.

The directive implies that the airlines would have to not only provide details of route-wise fares but also detail them for each 'fare bucket'. Aircraft seats are grouped into different categories, each at a distinct price. These categories are referred to as 'fare buckets'.

At the two meetings, all airlines were briefed about the provisions of Rule 135 of the Aircraft Rules, 1937, which deals with publishing of tariff established by them on their websites or in daily newspapers.

In view of the "sudden and inordinate surge" in airfares from November 15 particularly on the metro routes, all airlines were directed to bring tariffs to a reasonable level, the spokesperson said.

Following this, the DGCA had issued a directive on November 19 asking airlines to furnish a copy of established tariff route-wise across its network in various fare categories to the DGCA on every first day of the calendar month.

"The response of the airlines to the notice was not satisfactory and as the increase in tariff continued unabated, the DGCA commenced meetings with the CEOs of the established domestic airlines on December 4 and 6 in order to remedy the situation," the spokesperson said.

Related report:

Let markets, not regulation drive air travel fares: Mallya

Protesting against the government efforts to reduce high prices charged by airlines on tickets booked at short-term notice, Kingfisher Airlines promoter Vijay Mallya today said airfares should not be capped by the regulatory authorities, whether it is in upper or lower band.

"There is no case of capping airfare in a liberalised environment, be it at upper or lower band. It is a function of demand and supply," Mallya told reporters on the sidelines of a Ficci conference.

"It is not exploitation by the airlines... Airlines are fighting for market share, so demand and supply has to be respected", he said, adding, "Media is sensationalising the fare issue."

Official sources tell that the airfares charged by the domestic airline companies have come down by 20-25 per cent after the 'pressure' mounted by the Civil Aviation Ministry and Directorate General of Civil Aviation (DGCA) against exorbitant airfares.

In the last few weeks, Civil Aviation Minister Praful Patel and the aviation regulator DGCA have warned that action would be taken if the errant airlines did not roll back the abrupt hike in air fares.

On Saturday, Director General of Civil Aviation E K Bharat Bhushan had a meeting with the representatives of the low-cost carriers SpiceJet, IndiGo and Go Air on the issue.

This week, he is likely to meet representatives of full service airlines -- Air India, Jet Airways and Kingfisher Airlines -- for discussions.

At present, the air fare range on Delhi-Mumbai sector is between Rs 5,000- Rs 20,000 on economy class ticket, while on Delhi- Chennai and Delhi-Kolkata sector, it is between Rs 5,000-Rs 15,000.

Post Diwali, the air fares, especially the last-minute or spot tickets, had skyrocketed. Two weeks ago, the lowest fare for the last-minute tickets booked at Delhi-Mumbai route was about Rs 17,000, even though holiday travel season had not begun.

This is in contrast to the lowest available fares of about Rs 3,000 for Delhi-Mumbai and Rs 4,000 for the Delhi-Chennai and Delhi-Kolkata route during the same period last year.

The proposal of airliners to fix ticket fares based on four distance slabs of less than 750 km, 750-1,000 km, 1,000-1,400 km and beyond 1,400 km, was rejected by the Civil Aviation Ministry last week.

According to this proposal, a passenger buying an economy class ticket closer to the travel date would have to shell out Rs 10,500 for a Delhi-Chandigarh or Chennai- Coimbatore flight and anything upto Rs 40,000 on the Delhi-Bangalore or Delhi-Kolkata route.

The airlines have 'bucket fares', which means that there are certain number of seats reserved in each flight at low fares that can be booked much in advance.

As soon as these number of seats are filled, the fare for tickets booked closer to the date of travel, increases progressively towards a higher bucket.

Mallya said that to resolve the air fare issue, government should look into the taxation issues as the jet fuel costs in India are 60 per cent higher than in Dubai or Singapore.

"We need declared goods status for ATF (air turbine fuel). The savings (from lower taxes) will be passed on to the consumers," he said.

At present, VAT on ATF in some states is as high as 30 per cent, while commodities brought under declared goods status by the Central Government have to pay a uniform VAT of 4 per cent across the country.

Mallya also talked about the fund raising plans of Kingfisher through global depository receipts, which he said, will be launched in January.

The airline had earlier announced its plans to raise USD 250-300 million from the global markets. It had also said that its Board has approved the debt recast package, under which lenders' debt of up to Rs 1,355-crore will be converted into share capital.


 

Comments

 

Other News

GI tags: Scaling traditional wealth into global brands

Geographical Indication (GI) tags have emerged as a powerful tool for protecting India`s cultural heritage, while creating economic opportunities for local communities. By linking products to their place of origin, GI tags preserve traditional knowledge, prevent misuse, and enhance consumer trust. They h

BMC: 207 officials in ACB net, 112 still on duty, 68 retire before justice catches up

There are significant delays in the handling of corruption cases involving officials of the Brihanmumbai Municipal Corporation (BMC), a Right to Information (RTI) response obtained by rights activist Jeetendra Ghadge has revealed. As of 30 April 2026, 207 BMC officials face Anti-Corruption Bureau (A

The transformation trap: Why efficiency is not innovation

Every company is transforming, or so it claims.   There was a time when the word ‘transformation’ carried weight. It signified bold strategic shifts, reinvention of business models, and breakthrough technologies that fundamentally changed how organizations created

The Sardar biography that throws light on our times

Patel: A Life By Rajmohan Gandhi Aleph Books, 568 pages, Rs 1,199   There are many biographi

Climate change, El Niño rewrite Indian monsoon

The month of July exceeded its rainfall target despite forecasts of a below-normal month under a strengthening El Niño. The reason could be that climate change is amplifying monsoon complexity: West Pacific warming, Western Disturbances and evolving ocean conditions increasingly interact with El Ni&

Mumbai has just 1.28 sq.m. of open space per person: Study

Mumbai`s public space crisis is as much about mismanagement as it is about scarcity, and offers a governance roadmap that can be implemented without new legislation, according to a new report by the Urban Design Research Institute (UDRI) and the NGO Alliance for Governance and Renewal (NAGAR).  

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter