Airlines give in, fares to be inclusive of all surcharges

New Delhi: Flying may not become affordable in a hurry but airlines are likely to shift to a single advertized fare policy for domestic flights.
Three days after Directorate General of Civil Aviation (DGCA) cracked the whip on airlines on two issues — simultaneous price changes that hint at cartelization and confusing price policies where low basic fares are advertized only to be topped up by hefty surcharges — airlines have relented on the latter.

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Aero India 2009: Airshow News
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Earlier, the ministry also issued notice to airlines on the issue of passing on hefty surcharges and making them look like government taxes. After that the carriers made clear distinction in their charges and the PSF. But now the ministry — angry after the recent hefty hike — wants fares to be a consolidated figure.
While on cartelization and fare hike, the common line towed by six airlines who sent their reply by Saturday deadline is denial of any price-fixing. "They have sent lengthy replies which are being studied. But the essence is that January to March is low-travel season and fares had to be hiked to improve yields. Some airlines have said their software decides fares automatically based on number of people flying as a certain minimum cash flow is needed," said highly placed sources.
15/02/09 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Feb 2009