Regulator had directed airlines to rein in disproportionate
rise in ticket prices,starting May
OUR BUREAU NEW DELHI
Indias leading domestic airlines have agreed to slash airfares in their highest fare bracket by 5-20 % after the aviation regulator directed them to rein in the disproportionate rise in ticket prices which started from May 2012,a period when demand for domestic air travel was declining.According to a government statement,the aviation regulator Director General of Civil Aviation (DGCA),has also directed the airlines to take a relook on the route-wise airfares offered in the highest fare bucket,and rationalise those high fares.There is a complete lack of pattern.I have checked a few airlines where the starting fare is.24,000 on a major route and not one seat is sold,while another has a routine.6,000-. 7,000 ticket.The proposed 5-20 % cut is a lot as lower fares are not a problem,but the higher ones are, DGCA chief Bharat Bhushan told ET.The development comes as DGCA chief convened a meeting with all the chief executives of domestic airlines concerned over issues such as huge variation in the highest fare by different carriers on the same sector,airfares opening with high fares and decreasing towards the departure date and phenomenally high fares although jet fuel cost has increased by only 16%.Scheduled domestic airlines have now proposed reduction of airfares in the highest fare bucket on various routes in the domestic network between 5% and 20%, an official government statement said.It will be huge relief for passengers,especially those making spot bookings,as highest fare buckets have shot up by 20% compared with the last season.So,it is a welcome move in passengers interest, travel technology solutions firm Bird Group ED Ankur Bhatia said The situation,at present,is similar to that in December 2010 when airfares had shot up drastically,by about 200%,on a few sectors,post Diwali.Reacting to the situation,the DGCA had issued directions on November 19,2010 to airlines to furnish a copy of established route-wise tariff across their networks in various fare categories,in the manner offered in the market.In an interview to ET that appeared on Monday,Neil Mills,the CEO of SpiceJet,when quizzed whether airlines have regained pricing power said: Lack of pricing power was not so much an issue of extreme supply,but an issue of extreme lack of discipline.This was pulling the market down.Beginning January,carriers are more disciplined and selling below cost has largely stopped. However,most of Indias domestic airlines are in the red carrying huge debt in their books.With Kingfisher Airlines curtailing its services,there has been a perception that airlines have got some amount of pricing power.Further,much of the highest bucket fares comprise an insignificant number of tickets sold by airlines,and therefore the directive will have little impact on the airlines.The regulator also asked them to report any significant and noticeable change in the established tariff within 24 hours of effecting the change and maintain all records pertaining to established tariff.
Call Off Strike,will Take Back Sacked AI Pilots
NEW DELHI Civil aviation minister Ajit Singh on Monday reiterated his readiness to take back the sacked pilots provided they call off their strike and returned to work.We are still open to talks,but the pilots are not ready for that.They can be taken back on a caseby-case basis if they call off the strike and come to the negotiation table, he said.On hiring new pilots,he said it is up to AIs management to take a call on it.On the letter written by the AI executive pilots to the minister stating that they were stressed out due to the strike by the IPG pilots,Singh said,he did not receive any such letter.What I got was an unsigned letter from some pilots,he said.
http://lite.epaper.timesofindia.com/getpage.aspx?edlabel=ETBG&pubLabel=ET&pageid=5&mydateHid=19-06-2012OUR BUREAU NEW DELHI
Indias leading domestic airlines have agreed to slash airfares in their highest fare bracket by 5-20 % after the aviation regulator directed them to rein in the disproportionate rise in ticket prices which started from May 2012,a period when demand for domestic air travel was declining.According to a government statement,the aviation regulator Director General of Civil Aviation (DGCA),has also directed the airlines to take a relook on the route-wise airfares offered in the highest fare bucket,and rationalise those high fares.There is a complete lack of pattern.I have checked a few airlines where the starting fare is.24,000 on a major route and not one seat is sold,while another has a routine.6,000-. 7,000 ticket.The proposed 5-20 % cut is a lot as lower fares are not a problem,but the higher ones are, DGCA chief Bharat Bhushan told ET.The development comes as DGCA chief convened a meeting with all the chief executives of domestic airlines concerned over issues such as huge variation in the highest fare by different carriers on the same sector,airfares opening with high fares and decreasing towards the departure date and phenomenally high fares although jet fuel cost has increased by only 16%.Scheduled domestic airlines have now proposed reduction of airfares in the highest fare bucket on various routes in the domestic network between 5% and 20%, an official government statement said.It will be huge relief for passengers,especially those making spot bookings,as highest fare buckets have shot up by 20% compared with the last season.So,it is a welcome move in passengers interest, travel technology solutions firm Bird Group ED Ankur Bhatia said The situation,at present,is similar to that in December 2010 when airfares had shot up drastically,by about 200%,on a few sectors,post Diwali.Reacting to the situation,the DGCA had issued directions on November 19,2010 to airlines to furnish a copy of established route-wise tariff across their networks in various fare categories,in the manner offered in the market.In an interview to ET that appeared on Monday,Neil Mills,the CEO of SpiceJet,when quizzed whether airlines have regained pricing power said: Lack of pricing power was not so much an issue of extreme supply,but an issue of extreme lack of discipline.This was pulling the market down.Beginning January,carriers are more disciplined and selling below cost has largely stopped. However,most of Indias domestic airlines are in the red carrying huge debt in their books.With Kingfisher Airlines curtailing its services,there has been a perception that airlines have got some amount of pricing power.Further,much of the highest bucket fares comprise an insignificant number of tickets sold by airlines,and therefore the directive will have little impact on the airlines.The regulator also asked them to report any significant and noticeable change in the established tariff within 24 hours of effecting the change and maintain all records pertaining to established tariff.
Call Off Strike,will Take Back Sacked AI Pilots
NEW DELHI Civil aviation minister Ajit Singh on Monday reiterated his readiness to take back the sacked pilots provided they call off their strike and returned to work.We are still open to talks,but the pilots are not ready for that.They can be taken back on a caseby-case basis if they call off the strike and come to the negotiation table, he said.On hiring new pilots,he said it is up to AIs management to take a call on it.On the letter written by the AI executive pilots to the minister stating that they were stressed out due to the strike by the IPG pilots,Singh said,he did not receive any such letter.What I got was an unsigned letter from some pilots,he said.
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