Charge less to fly full, govt advises airlines


New Delhi, Feb 6 (PTI): Concerned over empty flight seats, the government has asked Indian carriers why could they not charge low spot fares so that about 30 per cent of their seats do not go vacant.

Observing that highly exorbitant rates were being charged closer to the travel dates, Civil Aviation Ministry officials, however, made it clear that the government had no intention to decide airfares which have to be determined by the market.

They pointed out that the average passenger load factor for all Indian airlines hovered around 70-75 per cent, implying that the remaining seats on a flight go empty. The officials, at a meeting of the Civil Aviation Economic Advisory Committee on Monday, suggested that the airlines could charge last minute spot-fares at low fares to fill up their seats.

Maintaining that the government would not determine airfares, they said the ministry and aviation regulator Directorate General of Civil Aviation (DGCA) would continue to closely monitor the movement of airfares, particularly to check both predatory and exorbitant pricing.

The meeting came in the backdrop of a Supreme Court directive last month to DGCA to examine the tariff structure of Indian Airlines in view of the wide range of the base prices of air tickets.

The apex court had expressed concern over the massive differential between the lowest and highest air fares on the price bands.

DGCA sources said efforts would be made to compress these wide price bands, ranging from 12 to as high as 22 set by different airlines on each sector, and make air fares more transparent so that the travelling public was clear about the cost of travel.

While there was a need to make the price bands more transparent, there should also be some rationale behind the huge differences between the highest and the lowest air fares in these price bands, they said. Justifying the high price bands, airline industry sources said that they have to take into account, apart from the actual costs of air travel, the variable costs on inputs like jet fuel, whose prices continue to rise, and staff costs.

  

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Comment on this article

  • vinaya, dubai

    Wed, Feb 06 2013

    I book ticket in advance to avoid price hike and last minute rush and when we book at the last minute tickets we get answer that flight is full so no seats available, so in case of emergency one has to pay the high fare to get a seat, but when getting into the aircraft i find many seats are empty.So its better to keep the price lower so that flight will not go with few empty seats.

    DisAgree Agree [2] Reply Report Abuse

  • Soloman Lewis, udupi/Muscat

    Wed, Feb 06 2013

    Most of the passengers who book seats closer to the travel dates are in some sort emergency. Fleecing such passengers is unfair.

    DisAgree Agree [5] Reply Report Abuse

  • VINAY, MANGALORE

    Wed, Feb 06 2013

    First of all, why dont they reduce the Air fare of Air India?
    One way fare from Mumbai to Calicut in Jet Airways is Rs. 7280/- whereas in Air India it costs Rs. 13160/-. This was on 30/01/13. Obviously i purchased Jet Airways tkt.

    DisAgree [2] Agree [9] Reply Report Abuse

  • Krishna Kant, Mangalore/Moodbidri

    Wed, Feb 06 2013

    This is a very good advise for airline bosses who are planning to get rich in overnight... i still remember Deccan air low price but was best and at present is Spicejet low price and it is best, Air india is good but their flight's are very bad unless there is a VVIP flying on it to that sector . So airlines take govt's advise if you dont want to get bankrupted.

    DisAgree Agree [9] Reply Report Abuse

  • Stany D'sa, Mangalore/Dubai

    Wed, Feb 06 2013

    Air lines must realize that they should fly full in order to make profit. Today traveling by air is no more luxury and accordingly the air lines must be flexible and sell the seats at competitive price.The present attitude shows how best the management is dealing with the situation.We must give up corrupt practice and work for profit and development.

    DisAgree Agree [11] Reply Report Abuse

  • Naveen D'souza, Valencia-Kuwait

    Wed, Feb 06 2013

    MY SELF I OBSERVED A LOT OF TIME OUR AIRLINES SEATS ARE EMPTY. WHEN WE ARE ASK THE AIRLINER ABOUT THE TICKET, THEY WILL GIVE THE ANSWER "NO-SEAT" OR THEY WILL GIVE US VERY HIGH FARE.
    SIR WE REQUEST YOU THAT WE LIKE TO TRAVEL IN OUR COUNTRY AIR LINE BUT UNFORUNATALLY WE ARE CHOOSE TO TRAVEL OTHER COUNTRY AIRLINER. JUST BECAUSE OF FARE. PLS KEEP FARE SHOULD ALWAYS NEGOTIABLE.

    DisAgree Agree [18] Reply Report Abuse


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