Explore Business Standard
Flight Ticket Prices
Airlines are price takers as they do not have an influence on the prices they pay, IATA Chief Economist Marie Owens Thomsen has said and highlighted that carriers' need to diversify their revenues is complicated by slim profit margins as well as weak balance sheets. In a fast-growing aviation market like India where the air traffic demand is on the rise, there are persistent concerns about airfare trajectory and suggestions from various quarters to make air tickets more affordable. Discussing overall airfares and the costs of airlines, Thomsen said airlines do not have any influence on the prices they pay. "There are too few aircraft manufacturers and oil companies. Whatever supplies we are looking at upstream, we are price takers and downstream, we have the hyper competitive environment where all customers can see all fares from all airlines at all times. So, we always compete in price," she told PTI in an interview in Geneva earlier this week. Thomsen, who is the Chief Economist
The government should ensure that development of infrastructure at airports is cost-effective and the cost of travel remains within the reach of the common man, a Parliamentary Panel has recommended while voting against the concept of "gold plating" of airports. The panel headed by Rajya Sabha MP Sujeet Kumar has said that the most important stakeholder in the sector is the common passenger whose aspiration and need to undertake air travel will deepen with the passage of time and growth of the economy. The committee has also suggested that user charges should remain affordable and competitive as compared to other airports in the Asia Pacific region. "India is a developing country and passengers are price conscious. In our national civil aviation policy, affordability and sustainability have been emphasised by the government. The Committee observes that maximum people use the airports just for travel, do the baggage check-in, get their baggage on arrival and leave. Other peripherals
The overall average price of air tickets on various routes, including Delhi-Mumbai, has declined, according to an analysis based on the data compiled by the Directorate General of Civil Aviation (DGCA). In recent times, there has been a steep surge in airfares on certain routes, especially in the wake of the suspension of operations by Go First. Among 10 routes, the average airfares on the Delhi-Mumbai route dropped 74 per cent on June 29 compared to June 6, as per the data compiled by the DGCA's Tariff Monitoring Unit. During the same period, the decline was 70 per cent on the Delhi-Pune route, 72 per cent on the Delhi-Ahmedabad route and 36 per cent on the Delhi-Srinagar route. However, ticket prices rose on some routes during the comparative period. The average fares on Mumbai-Delhi and Pune-Delhi routes rose 23 per cent and 17 per cent. Earlier this month, airfares on various routes had surged, following which Civil Aviation Minister Jyotiraditya Scindia had asked representat
Air India has selected technology company RateGain to provide its product called 'AirGain' that will assist in dynamically adjusting ticket prices with real-time, accurate and high-quality airfare data, a statement said on Wednesday. Tata Group-owned Air India maintains a fleet of 113 planes that operate over 500 daily flights, its statement noted. "AirGain offers actionable insights to quickly react to market price change and stay ahead of the competition through its scalable and intuitive analytical capabilities," it said. Airlines gain competitive intelligence by analyzing market data in real-time, it added. AirGain's ability to track historical trends and fare changes on the most-profitable routes makes it easy for revenue and commercial teams to stay on top of every market development, the statement said.
The government announced to lift the cap on airfares after over two years. Does it mean that we will have to shell out more for flight tickets? Will it lead to a price war? Let's find out