Airlines told to quote single fares

New Delhi: Government has directed domestic airlines to go in for single fares and not confuse passengers by advertising low basic fares and then topping them up with multiple surcharges under different heads. The Directorate General of Civil Aviation (DGCA) had earlier this month issued notice to airlines and asked them to have transparent fare policy.
Now aviation minister Praful Patel has spelt out exactly what airlines are expected to do. "There must be a single fare, an all-inclusive figure. I am told one airline has started doing it and expect all of them to follow soon," Patel said. Last week airlines had told DGCA that they would simplify their fare structures. Asked about the recent fare hike by airlines, the minister said carriers had to do so due to a number of reasons like their financial health and low passenger volumes, while adding that no cartel-like behaviour would be tolerated.
Despite low fares in January, domestic air travel had witnessed a 14% fall in growth as compared to last January. With higher fares and lower travel growth, airlines are again looking at trimming their fleets in coming months. Patel, however, did not foresee any immediate cut in flights. In the past one year, airlines have reduced about 25% flights to have supply closer to actual demand at 'sustainable' rates.
23/02/09 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Feb 2009