Ajit Singh, the Union civil aviation minister is categorical when he says his ministry won't regulate the unbundling of fares. Speaking to ET on a host of issues, the minister admits when the economy slows down, airline travel is the worst hit, as people cut back on travel. Edited excerpts:
On regulating airlines by bringing a semblance of uniformity on unbundling of fares, will the ministry issue a clarification on various extra charges that airlines are proposing to levy?
We are not regulating anything. This ancillary charges or unbundling fares is a worldwide practice. In fact, the low-cost airlines thrive on that. Many airlines, including those in the US, charge if you check-in baggage. The fact is that even when you are not likely to use many facilities, but in the present system, you are paying for it. You may not have breakfast or lunch but you are still paying for it. And you may have very cramped seat in the economy class and you are still paying the same far as the people who have better space in the economy class. So, the idea is that, you pay for what you get. The passenger pays for the base fare and for any extra facilities one uses. This move will either reduce the base fare. There are a few things we have to look out for still — like charging for the seats. As I said, if a passenger needs to use some extra facility, then he/she is charged for it. So, some row seats in the front, rows in sides, the window seats can be charged.
10/06/13 Raji Reddy Kesireddy/Economic Times
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On regulating airlines by bringing a semblance of uniformity on unbundling of fares, will the ministry issue a clarification on various extra charges that airlines are proposing to levy?
We are not regulating anything. This ancillary charges or unbundling fares is a worldwide practice. In fact, the low-cost airlines thrive on that. Many airlines, including those in the US, charge if you check-in baggage. The fact is that even when you are not likely to use many facilities, but in the present system, you are paying for it. You may not have breakfast or lunch but you are still paying for it. And you may have very cramped seat in the economy class and you are still paying the same far as the people who have better space in the economy class. So, the idea is that, you pay for what you get. The passenger pays for the base fare and for any extra facilities one uses. This move will either reduce the base fare. There are a few things we have to look out for still — like charging for the seats. As I said, if a passenger needs to use some extra facility, then he/she is charged for it. So, some row seats in the front, rows in sides, the window seats can be charged.
10/06/13 Raji Reddy Kesireddy/Economic Times
