Spot fares for flights across all domestic sectors dipped 20-25% after aviation regulator DGCA took a tough line on exorbitant fares charged by airlines.
Spot fares for flights across all domestic sectors dipped 20-25% after aviation regulator DGCA took a tough line on exorbitant fares charged by airlines. Last week, civil aviation minister Praful Patel had threatened stern action against airlines unless they reduced spot fares — what you pay to buy a ticket to fly immediately.
The reduction in fares on Sunday comes even as private airlines have taken an aggressive public posture, questioning the government and DGCA’s powers to regulate fares and simultaneously demanding that the government help them reduce operational costs.
On Sunday, the fares stood thus: The one-way Delhi-Mumbai fare was between Rs5,000 and Rs10,000, Delhi-Chennai Rs5,000 and Rs15,000, and Delhi-Hyderabad between Rs5,000 and Rs13,000. Delhi-Leh was less than Rs 4,500, Delhi-Kullu and Delhi-Shimla both below Rs6,000 and Delhi-Bangalore between Rs5,000 and Rs20,000. Mumbai-Chennai fares were priced between Rs3,000 and Rs12,000, Mumbai-Bangalore between Rs3,500 and Rs7,000, Mumbai-Thiruvananthapuram Rs4,500 and Rs16,000.
Sources said there could be further reduction in spot fares. The DGCA met the CEOs of budget carriers IndiGo, SpiceJet and GoAir on Saturday to convince them to bring more transparency in air fares. The regulator is scheduled to meet the full service carriers on Monday.
The DGCA has sought reduction in spot fares, a clear indication of bucket fares (pricing done on the basis of how much in advance the ticket is being booked and how many seats are available on the given flight) and how much a consumer would have to pay under bucket fares depending on the day of booking versus the day of flight.
Sources also confirmed that in the peculiar case of DGCA issuing a notice to a Malaysian budget carrier for pricing tickets to Kuala Lumpur at abysmally cheap prices (Rs3,999), the carrier had submitted an explanation saying this fare comprised only 1.5% seats on the given flight. After the explanation, the case against this airline has been closed by the DGCA.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}