Charge less to fly full, govt advises airlines

February 6, 2013

Charge_less

New Delhi, Feb 6: Concerned over empty flight seats, the government has asked Indian carriers why could they not charge low spot fares so that about 30 per cent of their seats do not go vacant.

Observing that highly exorbitant rates were being charged closer to the travel dates, Civil Aviation Ministry officials, however, made it clear that the government had no intention to decide airfares which have to be determined by the market.

They pointed out that the average passenger load factor for all Indian airlines hovered around 70-75 per cent, implying that the remaining seats on a flight go empty. The officials, at a meeting of the Civil Aviation Economic Advisory Committee on Monday, suggested that the airlines could charge last minute spot-fares at low fares to fill up their seats.

Maintaining that the government would not determine airfares, they said the ministry and aviation regulator Directorate General of Civil Aviation (DGCA) would continue to closely monitor the movement of airfares, particularly to check both predatory and exorbitant pricing.

The meeting came in the backdrop of a Supreme Court directive last month to DGCA to examine the tariff structure of Indian Airlines in view of the wide range of the base prices of air tickets.

The apex court had expressed concern over the massive differential between the lowest and highest air fares on the price bands.

DGCA sources said efforts would be made to compress these wide price bands, ranging from 12 to as high as 22 set by different airlines on each sector, and make air fares more transparent so that the travelling public was clear about the cost of travel.

While there was a need to make the price bands more transparent, there should also be some rationale behind the huge differences between the highest and the lowest air fares in these price bands, they said. Justifying the high price bands, airline industry sources said that they have to take into account, apart from the actual costs of air travel, the variable costs on inputs like jet fuel, whose prices continue to rise, and staff costs.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
April 2,2020

Chandigarh, April 2: A 59-year-old woman and her 10-month-old granddaughter have tested positive for novel coronavirus in Chandigarh on Thursday.

According to the Chandigarh Health Department, they are family contacts of the NRI couple that tested positive for COVID-19 earlier.
With this, the total cases in the Union Territory rose to 18.

The total number of confirmed COVID-19 cases in the country climbed to 1,965 on Thursday, after as many as 328 new cases were reported, said the Union Ministry of Health and Family Welfare. So far, at least 50 people have lost their lives due to the virus.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 24,2020

New Delhi, Mar 24: The total number of active COVID-19 cases reported so far in the country stands at 446 while the number of people who have been cured or discharged stands at 36, according to the Ministry of Health and Family Welfare.

Nine people have died from the disease while one case has migrated, the Ministry further informed.
The Central government has taken several steps to contain the rapid spread of the virus, including stoppage of all incoming passenger traffic on 107 immigration check posts at all airports, seaports, land ports, rail ports, and river ports.
There is a complete lockdown in as many as 548 districts of the country affecting several hundred million people.
The Indian Railways has also cancelled all passenger train operations till March 31.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 20,2020

New Delhi, Mar 20: The coronavirus pandemic will leave behind a global recession with small businesses, self-employed and daily wagers taking the worst hit, Mahindra Group Chairman Anand Mahindra said on thursday.

"The virus will eventually be conquered, but it will have left behind a global recession. The costs of that are incalculably high at this time. The most fearsome toll will be on small businesses, the self-employed & those whose lives depend on meagre daily wages," Mahindra said in a tweet.

Apart from the toll on lives, the legacy of Covid-19 may well be deaths due to stress, loss of livelihoods, a rise in homelessness and in extreme situations, civil unrest, he added.

"The only global experience that has lessons for us in the current situation is the last world war. In the aftermath of WW2, the US came up with the Marshall plan to revive Europe, effectively a giant fiscal pump-priming," Mahindra said.

In the US, the government dramatically dismantled regulations and opened up the economy to trade and these actions led to a boom-cycle that stretched to 1975, he added.

"This time, there will be no victors, only the vanquished. So every country will have to create its own post ‘virus war” marshall plan & take care of those in society who are hit the hardest. Perhaps we too can build the foundations of a sustained global growth cycle," Mahindra said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.