Sunday, May 31, 2009

Airlines not unanimous on deceptive fares: Spicejet

New Delhi: Domestic airlines are not "unanimous" in phasing out deceptive ticket pricing mechanism, low-cost carrier Spicejet CEO Sanjay Aggarwal has said, but he did not favour a government ban on such practice.
"When we took up the matter with the Federation of Indian Airlines (FIA), carriers were not unanimous," Aggarwal told PTI when asked if the airlines disagreed to the deceptive ticket pricing during discussions at FIA.
Asked if the carriers, including Spicejet, were guilty of misleading the common man by advertising the base fare alone, which is way below the total price, he said, "Absolutely. Yes we are."
The total airfare typically comprise base fare, fuel surcharge and various taxes and fees, but the airlines' focus in their advertisements are mostly on base fares, which at times of promotions are as low as zero.
Virtually pleading helplessness in changing the practice on his own, Aggarwal said, "There are challenges... I have tried to take out the fuel surcharge component. It is very difficult to take it out, I have tried it".
The Spicejet CEO added that when he joined the low-cost carrier last year, he "inherited the system" where the quoted fares were low and the actual price was much higher.
"If I could undo and do it all over again, I would take out the fuel surcharge component so that are there only base fare and taxes. But there will be one fare inclusive of fuel surcharge," he said.
31/05/09 PTI/The Hindu
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