Govt mulls extension of AI low fare services

Agencies
Posted: Thursday, Jul 16, 2009 at 1822 hrs IST
Updated: Thursday, Jul 16, 2009 at 1822 hrs IST

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New Delhi: Air India is considering a proposal to extend its low fare services to some domestic routes to compete with private carriers.

"In order to compete effectively with other domestic low fare carriers, and to get a share of the low fare market segment, Air India is considering a proposal to extend low fare services to some of the domestic routes also," Civil Aviation Minister Praful Patel informed Lok Sabha in reply to a question.

He, however, said Air India would continue to be a full service carrier in the domestic market.

Patel said Air India's subsidiary Air India Express operates low fare services on short haul international routes covering Gulf and South-East Asian countries.

"However, no change is under consideration regarding Air India's international services," he said.

In reply to another question, the Minister said, to check the trend of many airlines giving misleading advertisements regarding fares, the Aircraft Rules have been amended wherein airlines shall display tariff in a united manner to show the total amount payable by a passenger as also a break-up of the total amount, indicating the fare, tax, fees or other charges, if any, separately.

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» Air fares

Posted by Dr B Sundara on 2009-07-17 15:47:53.207058+05:30
It may be ideal to have standard fare structure as we have in railways to different classes of air travel. This would avoid cofusion.If the services are good,there could be good occupancy.LTC fares of Air India to government servants need to be standard one. Sometime back, due to fluctuating up and down fares, there have been instances of the government servants loosing money. The Air India, can try to have tie-ups with corporate companies to provide competitive fares.Reasonable standard fares with improved services may help the airline.

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