Thursday, September 01, 2016

Aviation Ministry may adopt Railways’ model to beat higher fares during festival rush

New Delhi: The aviation ministry is discussing a railways-kind of model to provide relief to flyers from higher fares during festival season and long weekends and is considering allowing airlines to add more capacity for such short periods to bridge the demand-capacity mismatch.
"The fares do get high during seasons like Christmas coming and all. For those times, we do not have capacity (aircraft) lying idle that can be used when the demand spikes. The solution could be to bring in more capacity for a brief period to tide over the fare hike. We can ask airlines that we will allow them to bring in aircraft lease for a brief period of time," Aviation Minister Ashok Gajapathi Raju told ET.

The model will be on the lines of Indian Railways, which launches special trains during the festive seasons to accommodate the huge increase in number of people who travel to celebrate these festivals. While the average airfares are lower, they spike during extended weekends and around the festival season, which is traditionally October to December in India.

Raju was quick to add that 'nothing is firmed up now but this could be a solution.' "It's a complicated problem and we do not have simplistic answers. If you find a simplistic answer, you will be adding to the problems."
01/09/16 Mihir Mishra/Economic Times
To Read the News in full at Source, Click the Headline


Post a Comment