Regulator sends notice to airlines over exorbitant fares


TOI, 17-11-2010 20:46:28


Write Comment     |     E-Mail To a Friend     |     Facebook     |     Twitter     |     Print



NEW DELHI: Acting on a TOI report highlighting how airfares have skyrocketed in the past few days, the Directorate General of Civil Aviation on Wednesday issued notices to all airline CEOs asking them to explain why travellers were being charged excessive fares.

The notice came after a probe by the regulator led to the finding that prima facie, domestic airfares from Monday (November 15) have been "substantially higher" than past weeks though there has been no hike in operating costs. The airlines have been asked to send their explanations by Friday.

"This kind of exorbitant fares can simply not be allowed. We are going to take the strictest possible action," aviation minister Praful Patel told TOI.

Explaining the action taken by the regulator, a source said, "DGCA chief Nasim Zaidi asked his officials to take passenger feedback following which the regulator’s fare analysis unit was activated to study fare movement in the past few days. Prima facie, it became evident that airlines are charging exorbitant fares since Monday without any justification for doing so."

Taking a very serious view of the findings, Zaidi is learnt to have ordered a complete study of the domestic air travel demand-supply situation in this peak season. Some big airlines are facing crew shortage because of which they are not able to operate flights as per their fleet and others like Kingfisher have a substantial part of their fleet on ground due to engine issues. Combined with the sharp capacity drop in Mumbai, thanks to the main runway closure there, the authorities fear a serious mismatch in demand-supply. Domestic air travel is growing in the range of 20-25% annually at the moment.

"We have begun a process of examining if airlines should have a fare band sensitive to demand-supply, so that fares do not exceed the highest stipulated level in crunch situations like the present one. We are also probing if this steep fare hike has been manipulated by fictitious booking so that all low fare seats are shown as sold out and only high fare ones can be bought. This kind of fleecing of passengers, as witnessed from Monday, will not be tolerated," said a top official.

TOI on Wednesday reported that for spot bookings or those done one day before the travel, one-way airfares on the Delhi-Mumbai route had soared to Rs 20,000 in economy class of full-service carriers. Even low-cost carriers were not too far behind. One-way business class fares were going as high as Rs 35,000. While almost all domestic sectors were seeing a seasonal 15%-25% rise in fares, the Delhi-Mumbai hike was as high as 300%.

Air fares rise as an aircraft’s seats keep getting sold. When a flight is just opened for ticket sale, the first few seats go for the advertised rock bottom fares. There are fears that the low fare seats are blocked by the travel industry so that only the high-fare basket seats are available to general passengers and once those seats are sold out, the fictitiously booked ones are released for sale at the higher price. The DGCA is now investigating if such foul play led to the unprecedented price hike this week.

Write your Comments on this Article
Your Name
Native Place / Place of Residence
Your E-mail
Your Comment   You have characters left.
Security Validation
Enter the characters in the image above
    
Disclaimer: Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Kemmannu.com will not be responsible for any defamatory message posted under this article.
Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on kemmannu.com to provide the IP address and other details of senders of such comments, to the authority concerned upon request. Hence, sending offensive comments using kemmannu.com will be purely at your own risk, and in no way will Kemmannu.com be held responsible.
Similarly, Kemmannu.com reserves the right to edit / block / delete the messages without notice any content received from readers.




Udupi: Traffic congestion and dangers to pedestria
View More

Udupi BasketUdupi Basket
Veez Konkani Issue # 129Veez Konkani Issue # 129
Contact for Masks, Sanitizers, PPE kits and More..Contact for Masks,  Sanitizers, PPE kits and More..
LIVE STREAM OF MASSES - Holy week schedule from Abu DhabiLIVE STREAM OF MASSES - Holy week schedule from Abu Dhabi
Our ABBA will never be forgotten - A TributeOur ABBA will never be forgotten - A Tribute
Hotte Thumba Tiffin Services at Kallianpura, Santhekatte and Kemmannu.Hotte Thumba Tiffin Services at  Kallianpura, Santhekatte and Kemmannu.
Smparka Feb 2020Smparka Feb 2020
Choice Furniture vast household showroom opens at Santhekatte, KallianpurChoice Furniture vast household showroom opens at Santhekatte, Kallianpur
Focus Studio, Near Hotel Kidiyoor, UdupiFocus Studio, Near Hotel Kidiyoor, Udupi
Canara Beach Restaurant, Hoode/Bengre, Udupi.Canara Beach Restaurant, Hoode/Bengre, Udupi.
Delite Catering, SanthekatteDelite Catering, Santhekatte
Welcome to Thonse Naturecure HospitalWelcome to Thonse Naturecure Hospital
Kemmannu Platinum Jubilee Souvenir – Amruth KaanikKemmannu Platinum Jubilee Souvenir – Amruth Kaanik
St. Alphonsa of India
Kemmann.com Face Book

Click here for Kemmannu Knn Facebook Link

Sponsored Albums