DGCA to look into tariff structure of Indian carriers

Image
Press Trust of India New Delhi
Last Updated : Jan 29 2013 | 2:34 PM IST

Efforts would be made to compress these price bands, which range 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 are clear about the cost of travel, official sources said here.

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 higher 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.

While the Airlines Passengers Association of India (APAI) has welcomed the apex court's directions, some aviation experts have also objected to the inclusion of congestion charges or extra charges of Rs 50 for giving a printout of the ticket.

"When most airlines are showing high on-time performance, then why should they charge congestion charges," asked Debashish Saha of the Aeronautical Society of India.

Giving an example, he said there used to be severe congestion earlier at the IGI Airport with planes hovering for 30 minutes before being cleared to land.

"Now it has three operational runways and there are generally no delays, barring the foggy days. Then what is the justification for the congestion charge," he asked.

Regarding the price for a ticket printout, Saha said under the Carriage by Air Act, it is the contractual obligation of an airline to provide a ticket to the passenger. "Why should an extra fee be levied?" (More)

  

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jan 24 2013 | 6:05 PM IST

Next Story