DGCA asks airlines to advertise total fare and its break-up.
The days of the Re 1 ticket may finally be over.
The Directorate General of Civil Aviation (DGCA) has asked all airlines to publish fares as a single amount in their advertising, while clearly defining various components.
So, instead of advertising tickets as Re 1, Rs 99 and separately telling consumers about “taxes and surcharges”, airlines will now have to clearly state the fare as a single amount. They must also break it into components — how much will go for tax, how much will go to the airline, how much to the airport operator as passenger service fee etc. The DGCA is in the process of preparing guidelines on this issue.
It has also asked airlines to examine the feasibility of incorporating fuel surcharge within the ticket price since aviation turbine fuel
(ATF) rates are already down to 2005 levels.
These decisions were announced after a meeting of officials of airlines, the DGCA and top civil aviation ministry representatives.
The DGCA has also warned airlines against “cartelisation” — an allegation the airlines have refuted. Its chief Nasim Zaidi has warned airlines against simultaneous fare hikes, saying the DGCA would be monitoring any collective fare changes.
Earlier this year, all domestic airlines had raised fares almost simultaneously, raising fears of cartelisation.
Some other issues were also discussed at this high profile meeting.
The ministry has made it clear to airlines that their plea of waiving any recent increase in charges such as user development fee (UDF), aeronautical charges etc cannot be entertained since the model code of conduct (due to general elections) is already in force.
Another demand from airlines — that the ministry take up the issue of ATF dues with the oil ministry — has also been rejected, with the civil aviation ministry saying all such dealings have to be directly between the airlines and oil companies.
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