When Domestic Flights Cost More
Frequent fare hikes by Indian Airlines and private carriers have made domestic flights more expensive than international flights over 50 per cent on an average calculated in terms of flying time.
IA has hiked fares three times in the last three years. In July 1994, the fare was increased by 15 per cent adding Rs 180 crore to the coffers. In October 1995, the fares went up by 20 per cent to fetch around Rs 200 crore for the airline. The hike last week, averaging 10 per cent on long routes and 14 per cent on short ones, is expected to earn IA Rs 200 crore.
In comparison, international fares have gone up by only 8 per cent in the comparable period. The fares are governed by the International Air Transporters Association (IATA), a body represented by most commercial airlines. Airlines take the IATA fare as a base and give discounts depending on the competition the sector.
An economy class return ticket between Delhi and Dubai, a four-and-a-half-hour flight, will cost Rs 14,000 compared with the Rs 17,530 for a three-and-a-half-hour Delhi-Trivandrum return ticket. In flying distance terms, Delhi-Dubai is a good 600 nautical kilometres further than Delhi-Trivandrum.
The return fare from Delhi to Singapore, a five-and-half-hour flight, is Rs 20,500 and between Delhi and Kathmandu, a two-hour flight is Rs 5,380. The Delhi-Bombay sector, the busiest domestic route where the flying time is 1 hour 55 minutes, costs Rs 8,350 for an up and down journey.
The fares charged by leading carriers for destinations in Europe is also much less compared with domestic fares on flying hour basis. An eight-hour trip between Delhi and London costs about Rs 27,000 for a return ticket. Travel agents further discount this by about 10 to 15 per cent.
Commenting on this, an IA spokesman said, The two cannot be compared. Factors like costs and operating conditions are different. He claimed that domestic fares in some neighbouring countries like Pakistan were far higher than Indian domestic rates.
However, travel trade sources says a glut of private airlines competing with PIA has pushed rates in Pakistan downwards through unofficial discounting.
With private airlines like Jet Airways and Sahara India following suit and matching IA on fares, there is no price competition in the domestic sector where a cartel-like situation exists. This is unlike in the international sector where competition forces airlines to operate on thin margins.
Travel industry sources said the domestic fare hike had dampened air travel to some extent. The impact is about 8 to 10 per cent. It has affected the holiday market rather than the corporate market. Also passengers from the hinterland taking international flights will now prefer to take trains up to the nearest international airport rather.
Domestic air fares have risen 120 per cent since last three years, said a Karol Bagh based travel agent. In 1994, a Delhi-Madras one way ticket cost Rs 3,050, now it is Rs 6,300.