Thursday, February 18, 2016

Airlines need price flexibility on regional routes: Study

Airlines should be flexible in ticket pricing rather than capping air fares at Rs 2,500 for one-hour flights, a study says.

"The proposed all-inclusive cap of Rs 2,500 on air fare is even lower than the first AC train fare for longer routes covered by one-hour flights (600-800 kilometres). The cap on air ticket should be linked to distance travelled," the study said.

The suggestion is part of a study on 'Regional and Remote Connectivity in India' released by Civil Aviation Minister Ashok Gajapathi Raju at an event today.

According to the report, since there is a high risk of a lower load factor on regional routes, more flexibility should be given to airlines for pricing these tickets. The cap should be applicable to a fixed proportion of seats, and carriers should be given flexibility of pricing rest of the seats, it noted.
18/02/16 Business Insider
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