Carriers may set fare based on distance

New Delhi: Airlines are likely to define domestic airfare price bands based on distances rather than on routes as demanded by the aviation regulator, two airline executives said.
The move comes as the Directorate General of Civil Aviation (DGCA) deadline for submitting price bands ended on 1 December. DGCA sought the information after last-minute fares shot up as much as fivefold in November.
Full-service airlines such as Air India, Jet Airways (India) Ltd, Kingfisher Airlines Ltd and low-cost airlines such as IndiGo, SpiceJet Ltd, JetLite and GoAir had been asked draw up the price bands and publish them on their websites for each month.
“It is difficult to have price bands for city pairs,” said a domestic airline official, who did not want to be named.
Low-cost airlines, catering to budget travellers, don’t want to set a minimum price as it may stop them from selling a ticket cheaper than that for a flight with seats going empty, the official said.
Full-service carriers would back a minimum price as that would help them compete with the low-fare carriers, said a second airline official, who also did not want to be named. “It is for DGCA to decide how they want to carry this out,” the second official said.
02/12/10 Tarun Shukla/Live Mint

To Read the News in full at Source, Click the Headline

Categories: Indian Aviation- In General Dec 2010