Ceiling on Economy Class Airfares




Ceiling on Economy Class Airfares

Air fares are not fixed by the Government as they are determined by the airline based on interplay of market forces.



Under the provision of Sub rule (1) of Rule 135, Aircraft Rules 1937, airlines are free to fix reasonable tariff having regard to all relevant factors, including the cost of operation, characteristic of service, reasonable profit and the generally prevailing tariff. Airfare so established by the airlines is published on their respective website under the provision of Sub Rule (2) of Rule 135, Aircraft Rules 1937.

While the Government no longer regulates the fares that are charged, it is ensured that considerable information is provided to the public in a transparent manner with respect to airline fares:

Air Transport Circular 05 of 2009 was issued for scheduled domestic airlines to display the airfare as per the template given in the circular, compliant to Rule 135, Aircraft Rules 1937. To ensure transparency and aid the traveler make an informed choice, DGCA vide Air Transport Circular 02 of 2010 has directed the airlines to upload fare sheet displaying fare offered across their network. The fare sheet contains information on various levels of fares starting from the lowest (discounted fares) to full fare offered on all sectors. This is done on a monthly basis and updated whenever there is any revision of fares.

DGCA has also set up a Tariff Monitoring Unit in 2010 that monitors airfares on certain routes selected on random basis to ensure that the airlines do not charge airfares outside the range declared by them. This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply in Rajya Sabha today.

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PPP Model for New Upcoming Airports

Airports Authority of India has issued Request for Qualifications (RFQ) to implement Public Private Partnership (PPP) Projects at select four airports, namely, Chennai, Kolkata, Ahmedabad and Jaipur airports. This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply in Rajya Sabha today.


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Free AIR Tickets to AI Personnel

There is a passage scheme prevailing in Air India which is in accordance with the industry practice, and International Air Transport Association (IATA) resolution 788. The Board of Air India has approved Passage Resolutions for the Company which provides 8 to 24 free/concessional passage per year for its employees and their families, subject to availability of seats and the number of years of service of the employees. The holders of all staff tickets are accepted for travel in the aircraft only after all the revenue paying passengers are accommodated. There is no expenditure incurred/likely to be incurred on the same by the Company. Further, employees have to bear the cost of all applicable Taxes like Passenger Service Fee and User Development Fee, Airport Tax etc.

The entitlements of passages and definition of family and taking into account the IATA Resolution 788 of Interline, Common Industry practice, the Board of Directors of Air India approved revised passage regulation which were implemented on 01.10.2013.

Passage Policy for employees of Air India is a part of their Service Regulation and is approved by the Board of Directors of Air India. This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply in Rajya Sabha today

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Servicing of AI Aircrafts Abroad

Air India aircraft are serviced in-house and are not serviced abroad. However, only the transit certification of aircraft has been outsourced by Air India at all the foreign stations to save cost. This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply in Rajya Sabha today

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Reduction in Airport Charges at IGI Airport

Airports Economic Regulatory Authority (AERA) has issued a consultation paper number 16/2014-15dated January 28, 2015 for determination of Aeronautical Tariffs in respect of Indira Gandhi International Airport (IGIA), Delhi for the Second Control Period (01.04.2014-31.03.2019). AERA has proposed to consider the X factor in respect of the aeronautical tariffs for the second Control Period (01.04.2014 - 31.03.2019) for the IGI Airport, Delhi at (+78.24%).

The current document issued by AERA is only a consultation paper and the final outcome as regards aeronautical tariff for IGIA, Delhi will be known only after completion of tariff consultation process by AERA as per mandate given to it under AERA Act, 2008. This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply in Rajya Sabha today.

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Payment of Dues by Private Airlines


The details of amount/dues to be paid to the Airports Authority of India (AAI) by major private airlines as on 31.12.2014 (provisional) are as follows:

Name of the airlines

Dues

Security Deposit
(Rs. in crores)
Jet Group
28.07
76.26
Spice Jet
236.53
82.50
Indigo
                          45.73
110.00
Go Airlines
44.04
30.05
Kingfisher
172.69 + 137.27*
0.00
*penal interest




Airports Authority of India (AAI) has issued notices to the Spice Jet and Go Airlines to clear their pending dues. This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply in Rajya Sabha today.

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Guidelines for Regulating National Services

Though domestic air transport services in the country have been deregulated, Government has laid down Route Dispersal Guidelines (RDGs) with a view to achieve better connectivity to remote and regional areas of the country. It is, however, up to the airlines to provide air services to specific places depending upon the traffic demand and commercial viability, subject to compliance of RDGs. As per the RDGs, all Scheduled Airlines who operate on Category-I routes are required to deploy 10% of the capacity deployed on these routes, on Category - II routes which connect stations in North East region, Jammu & Kashmir, Andaman & Nicobar and Lakshadweep. Further, at least 10% of the capacity required to be deployed on Category-II routes is to be deployed for connectivity exclusively within these regions (Category -II A routes). They are also required to deploy at least 50% of the capacity deployed on Category - I routes to remaining routes i.e. Category III route.

All scheduled domestic airlines are complying with RDGs issued by the Government. RDG compliance is ensured route category wise and not state wise. This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply in Rajya Sabha today.

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Monetization of Surplus Land Assets by AI

Recently, Air India has signed an MoU with NBCC to develop its land parcels, on Joint Venture (JV) basis. At present only one property i.e. a plot of land at Laxmi House, Chennai is identified to be developed on JV basis. This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply in Rajya Sabha today.

Ceiling on Economy Class Airfares Ceiling on Economy Class Airfares Reviewed by Ajit Kumar on 6:41 PM Rating: 5

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