core sector communique

DGCA Meets CEOs of Domestic Airlines, asks them to examine the Rising Airfares

In view of sudden spurt in airfares in the recent past on the domestic network, the Director General of Civil Aviation convened a meeting with CEOs of the scheduled domestic airlines. The Director General of Civil Aviation expressed his concerns on the exponential increase in airfares of certain airlines on various domestic sectors. He also expressed concern over the following issues, which are ultimately affecting the travelling public: ·                     Increase in average airfare offered by the airlines is phenomenal, although the ATF prices have gone up by only 16% in June 2012 vis-à-vis June 2011.  ·                     Huge variation in the highest published airfare by different carriers on the same sector. ·                     Airfares do not show increasing trend with the date of departure. Many a times, fares of higher inventory are opened and then lowered as the date of departure approaches. This may result into passengers buying tickets in advance may end up paying more than the passengers buying later. ·                     Whereas passenger traffic has seen a downward swing in May 2012 over the corresponding period of last month, the airfares have seen a disproportionate spurt. Airlines have been directed to address the above issues in a time bound manner. Airlines have also been directed to have a relook on the route-wise airfares offered in the highest fare bucket and attempt be made that maximum airfares are reasonable. Airlines reassured the Director General of Civil Aviation that they will examine the airfares offered in the highest fare buckets. Scheduled domestic airlines have now proposed reduction of airfares in the highest fare bucket on various routes in the domestic network between 5 to 20%. Airlines have been advised to upload the revised tariff sheet on their respective websites.