Wednesday, March 20, 2019

Govt tells airlines to increase capacity to keep fares from spiraling

Airlines have been advised by the government to increase capacity to keep a check on spiralling air fares, official said on Tuesday.

A meeting was held between the Directorate General of Civil Aviation (DGCA) and all the airlines on Tuesday.

A senior DGCA official said the government did not issue a directive, but advised airlines to increase capacity and keep fares in check.
The regulator is undertaking sector-specific reviews on price hike.

The government has already advised domestic airlines not to go in for predatory air fare pricing as several 737-MAX aircraft were grounded due to safety reasons in the wake of a plane crash in Ethiopia.

India suspended operations and overflight permission for all Boeing 737-MAX aircraft in India from 4 p.m. on last Wednesday.

Since March 14, air passengers have faced the grim prospect of high air fares and fewer flight choices as several airlines cancelled operations for a number of reasons, including the grounding of the Boeing 737-MAX aircraft.

Industry insiders pointed out that with no short-term relief in sight, some sectors will continue to see a rise of more than 100 per cent in last minute bookings.

Operations of airlines like SpiceJet and Jet Airways have been hit due to the government's decision on last Wednesday to join a global grounding of 737-MAX aircrafts following a crash in Ethiopia.

In India, SpiceJet and Jet Airways operate 17 Boeing 737-800 MAX aircraft -- Spice (12) and Jet (5). A part of Jet's fleet has already been grounded due to other reasons.

Apart from SpiceJet, financially challenged Jet Airways has already grounded more than 40 aircraft due to non-payment of lessors' dues. The Jet Airways Group operates a fleet of 123 aircraft.
20/03/19 IANS/News Minute
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