Govt cracks whip against airlines, says slash ticket rates
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.
While most of the major carriers have 13-14 fare levels on most sectors, no-frill carrier GoAir has as many as 22 one -way basic fares ranging from Rs 3,770 to Rs 24,200 for one- way travel between Delhi and Mumbai in December last year.
Its no-frill competitor IndiGo's tickets ranged from the lowest of Rs 3,770 to the highest level of Rs 16,449, while SpiceJet's was Rs 3,770 and Rs 15,489.
On the same sector in the same month, Air India charged the lowest fare of Rs 3,920 and the highest of Rs 17,308, while the fares of Jet Airways ranged from Rs 3,970 to Rs 23,950. Similarly, Jet Konnect fares on Delhi-Mumbai sector were between Rs 3,970 and Rs 24,100.
Over and above these basic fares, a passenger also has to pay a passenger service fee, airport charges and a fuel surcharge.
