Government strikes down airlines' proposal for massive fare hike

04 Dec 2010

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The government has rejected a proposal by domestic airlines for a massive fare hike on domestic routes based on flight distances. The government has struck own the proposal outright and instead warned them of stern action if the last-minute ticket prices were higher than average ahead of the high-demand Christmas-New Year break.

There can be "no justification" for airlines hiking fares in an "arbitrary manner" and the government cannot be a mute spectator to the carriers' move, civil aviation minister Praful Patel said.

According to him, the airlines have proposed price bands on four distance-based slabs, which include distances like up to 750 km, 750-1,000 km, 1,000-1,400 km and over 1,400 km.

The proposed fares for distances up to 750 km on a LCC were set at Rs2,200, while the maximum fare on a full service carrier (FSC) was put at Rs13,000.

For distances between 750 km and 1,000 km the minimum ticket price is mooted at Rs3,000 (LCC) - Rs20,000 (FSC); between 1,000 km  and 1,400 km: Rs4,000 (LCC) - Rs25,000 (FSC); and over 1,400 km: Rs5,000 (LCC) - Rs.40,000 (FSC).

Under the proposed fare system, for an economy class ticket closer to the travel date passengers may be charged Rs10,500 for a Delhi-Chandigarh or Chennai-Coimbatore flight and anything up to Rs40,000 on the Delhi-Bangalore or Delhi-Kolkata route.

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