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Airfare Hike
The government on Saturday capped the airfares in the range of Rs 7,500 to Rs 18,000 depending on the distance amid soaring air ticket prices due to the IndiGo flight disruptions. The fare limits, excluding applicable charges, are not applicable for business class and UDAN flights, the civil aviation ministry said in an order. However, the order did not provide clarity on whether the caps are applicable for economy class tickets or both economy and premium economy class tickets. Under the limits, for a flight flying up to 500 kilometres, the fares are capped at Rs 7,500 and for 500-1,000 kilometres, the ticket price cap is Rs 12,000. For flights operating 1,000-1,500 kilometres, the fares are limited at Rs 15,000 and for above, 1,500 kilometres, the cap is Rs 18,000. The cap means that for a Delhi-Mumbai flight, which is covered in a distance of over 1,300 kilometres, the fare for at least the economy class is capped at Rs 18,000. The limits will be in place till the situation ..
Concerns over "skyrocketing" airfare and "little action" by government agencies and regulator dominated the Parliament's Public Accounts Committee (PAC) meeting on Wednesday as several MPs sought accountability from private airport operators and airlines to provide relief to passengers. PAC Chairperson K C Venugopal described the meeting of the panel, which has witnessed fiery and at times acrimonious discussion along party lines in the past, as "one of the best" sittings. Members, he said, expressed concerns that the Airports Economic Regulatory Authority (AERA) "is not acting properly as a regulator". "We need clear cut answers," he told PTI after the meeting. He said the regulatory body could not answer adequately the questions raised by members. The senior Congress MP said, "Concerns were raised by members that airfare is skyrocketing, and there is no action from the Directorate General of Civil Aviation (DGCA) or the Civil Aviation Department." Sources said some MPs called f
Airport charges are an important element of the commercial aviation ecosystem for infrastructure development and increase in airfares is not linked to a rise in the charges, according to the Airports Council International (ACI). Against the backdrop of the International Air Transportation Association (IATA) flagging concerns over a steep rise in airport charges, ACI also said that the charges will remain a critical source of revenue for airports. "Airport charges are an important element of the commercial aviation ecosystem for infrastructure development. Failing to address the capital expenditure requirements to accommodate the projected growth could have serious socio-economic consequences," Stefano Baronci, Director General, ACI Asia Pacific & Middle East, said. In a statement to PTI, he noted that airports are highly infrastructure-intensive businesses, with their cost structures dominated by significant fixed costs for the operation and upkeep of essential infrastructure such
Airfares are heading northwards for the festival season, with the average one-way ticket price on key domestic routes being 10-15 per cent more for Diwali and 20-25 per cent higher for certain flights to Kerala cities for Onam, according to an analysis. An analysis done by travel portal ixigo for PTI showed that the average one-way economy class fare for non-stop flight on Delhi-Chennai route during October 30-November 5 period is 25 per cent higher at Rs 7,618. This is in comparison to the fare during November 10-16 period last year. For the given comparison period, the ticket price is 21 per cent more at Rs 5,162 on Mumbai-Hyderabad route and 19 per cent higher at Rs 5,999 and at Rs 4,930 on Delhi-Goa and Delhi-Ahmedabad routes, respectively. On certain other routes, fares are higher in the range of 1-16 per cent, as per the analysis. ixigo's Group Co-CEO Rajnish Kumar said travel demand for Diwali is on the rise with airfares higher than last year. "Popular routes like ...
The civil aviation ministry will hold discussions with airlines later in the day on issues related to airfares, which have surged on certain routes in recent weeks, according to an official. Airfares have jumped significantly on certain routes, especially in the wake of crisis-hit Go First suspending operations from May 3. The meeting with representatives of airlines is likely to be chaired by civil aviation minister Jyotiraditya Scindia, the official said. The official also said that airfares are deregulated and the meeting is for monitoring and facilitation purposes. Amid a rise in airfares on certain routes, Scindia, last week, said the ministry was doing an analysis of routes that have been affected by the suspension of flights by Go First. Go First is undergoing an insolvency resolution process.
How will the airfare hike impact travel? What's First Global's Shankar Sharma's investment strategy? Why US Fed's rate hike failed to calm markets? What is Section 8 of Companies Act? Answers here
How will the airfare hike impact travel? What's First Global's Shankar Sharma's investment strategy? Why US Fed's rate hike failed to calm markets? What is Section 8 of Companies Act? Answers here