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Airlines will have freedom to set their own fares

Mumbai: Travellers may soon be a happier lot as different airlines may offer different fares to the same destination.

The Directorate General of Civil Aviation is planning to amend the Aircraft Rules, 1937, to which will allow airlines to establish and charge fares independently.
The system at present is such that, international carriers have to file their fares with the DGCA before introducing them.

Thus this change could trigger an increase in volatility in the fares in the Indian skies, say airline sources.
Its quite likely that airlines will now start undercutting each other to attract the maximum traffic.
For example on the Mumbai-London route, no airline can post a fare lower than that being charged by Air-India and British Airways. But if the new amendments are accepted, other airlines could undercut these two airlines.
Airline officials feel that ultimately the passengers will benefit.

Welcoming the move, Qantas India chief Khurshed Lam said: "The proposed changes legitimise the current practices in the market."
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domain - B : Indian business : News Review : 15 May 2001 : general