Mumbai/New Delhi:
A day after a firm message from the Union Civil Aviation Minister Praful Patel, airlines have backed down on the proposed fare bands. The air fares will now be rationalised by 25 per cent.
On Saturday, Praful Patel had promised "corrective action" within a week even as Directorate General of Civil Aviation (DGCA) met representatives of low cost airlines and asked them to show some reasonableness in ticket pricing.
"I am sure that within a week you will find corrective action being taken," Patel told reporters in Mumbai. "The regulator is not helpless. It should not be presumed that the regulator cannot take action. I am sure they can and they will when the situation warrants," the Minister said.
Patel had earlier said that neither exorbitant fares nor "predatory fares" (deliberate lowering of ticket prices below the actual costs to out compete other airlines) would be allowed.
In Delhi, top executives of three low cost airlines -- Spicejet, Indigo and GoAir -- were called for discussions on the issue by Director General of Civil Aviation, E K Bharat Bhushan. "The whole purpose is to ensure that there is some reasonableness about the fares," Bhushan, who was appointed on Friday, told reporters after the meeting. He said he has called representatives of full service airlines -- Air India, Jet Airways and Kingfisher Airlines -- for discussions on Monday.
The airlines' proposal of kilometre-based fare slabs was rejected earlier this week by the Civil Aviation Ministry which maintained there was "no justification" for fare hike in an "arbitrary manner".
As per the proposals, the airfares were quoted by the airlines for four distance slabs of less than 750 km, 750- 1,000 km, 1,000-1,400 km and beyond 1,400 km.
Under it, a passenger buying an economy class ticket closer to the travel date may have to shell out Rs. 10,500 for a Delhi-Chandigarh or Chennai-Coimbatore flight and anything upto Rs. 40,000 on the Delhi-Bangalore or Delhi-Kolkata route.
The slash in air fares during the peak holiday season, giving some respite to airline passengers. Most travellers NDTV spoke to welcomed the decision. The government still has to negotiate with two of the largest private airlines - Kingfisher and Jet Airways.
New Air Fare
What the Airlines had proposed
On Saturday, Praful Patel had promised "corrective action" within a week even as Directorate General of Civil Aviation (DGCA) met representatives of low cost airlines and asked them to show some reasonableness in ticket pricing.
"I am sure that within a week you will find corrective action being taken," Patel told reporters in Mumbai. "The regulator is not helpless. It should not be presumed that the regulator cannot take action. I am sure they can and they will when the situation warrants," the Minister said.
Patel had earlier said that neither exorbitant fares nor "predatory fares" (deliberate lowering of ticket prices below the actual costs to out compete other airlines) would be allowed.
In Delhi, top executives of three low cost airlines -- Spicejet, Indigo and GoAir -- were called for discussions on the issue by Director General of Civil Aviation, E K Bharat Bhushan. "The whole purpose is to ensure that there is some reasonableness about the fares," Bhushan, who was appointed on Friday, told reporters after the meeting. He said he has called representatives of full service airlines -- Air India, Jet Airways and Kingfisher Airlines -- for discussions on Monday.
The airlines' proposal of kilometre-based fare slabs was rejected earlier this week by the Civil Aviation Ministry which maintained there was "no justification" for fare hike in an "arbitrary manner".
As per the proposals, the airfares were quoted by the airlines for four distance slabs of less than 750 km, 750- 1,000 km, 1,000-1,400 km and beyond 1,400 km.
Under it, a passenger buying an economy class ticket closer to the travel date may have to shell out Rs. 10,500 for a Delhi-Chandigarh or Chennai-Coimbatore flight and anything upto Rs. 40,000 on the Delhi-Bangalore or Delhi-Kolkata route.
The slash in air fares during the peak holiday season, giving some respite to airline passengers. Most travellers NDTV spoke to welcomed the decision. The government still has to negotiate with two of the largest private airlines - Kingfisher and Jet Airways.
New Air Fare
- Delhi - Hyderabad: Rs. 5,000 to 13,000
- Mumbai - Trivandrum: Rs. 4,500 to 14,000
- Delhi - Chennai: Rs 5,000 to 15,000
- Mumbai - Bangalore: Rs. 3,500 to 7,000
- Delhi - Mumbai: Rs. 5,000 to 10,000
What the Airlines had proposed
- Rs. 10,500 for distances less that 750 km (e.g Delhi-Chandigarh, Chennai-Coimbatore)
- Rs. 14,550 to Rs. 19,500 for distances between 750-1,000 km
- Rs. 17,000 to Rs. 25,000 for distances between 1,000-1,400 km (e.g. Delhi-Mumbai)
- Rs. 22,000 to 40,000 for distances of more than 1,400 km (e.g. Delhi-Bangalore, Delhi-Kolkata)
Track Latest News Live on NDTV.com and get news updates from India and around the world
