Parlm Panel Recommends Govt to Keep Air Fares At “Affordable” Level

New Delhi: There has been an exponential growth in air traffic from Bhubaneaswar in recent times, clocking 40 per cent last fiscal with over 33 lakh passenger flying out of the airport during the period. But what has kept a larger segment still out of air travel is the fare. Private carriers these days also make a killing out of the extra baggage charges, making air travel an unpleasant experience.

High air fares are a concern not confined to the city alone but shared by public across the country. So much so that a Parliamentary panel on Friday came down heavily on the Civil Aviation Ministry for failing to check it and showing lack of “seriousness” in dealing with the issue.

In its report tabled in Parliament, the Department Related Stating Committee on Transport Tourism and Culture said the time has come to discourage the airlines from predatory pricing of air tickets.

“The Committee strongly feels that an upper cap of airfare in each Sector is the need of the hour. The Committee desires that concerted efforts shall be consistently made by the Ministry to prevail upon different Airlines not only to make available more and more low-fare bucket seats, but also to keep the airfares at minimum affordable level for the benefit of common man,” the committee recommended.

A closer examination by Odisha Bytes revealed that air fares between the lucrative Bhubaneswar-Delhi sector is hovering between Rs 6000 to Rs 8000 between now and the new year’s eve. Some 14 daily flights operate in this route. The lowest fare available is around Rs 4000 in the last half of January next year. The price band is identical on the Bhubaneswar-Bengaluru sector.

Criticising the Suresh Prabhu-led Ministry for taking refuge in global practices in fixing the luggage charges and uncontrolled airfares, the committee strongly felt that the Indian conditions and need of the people should be given due consideration while regulating the prices.

“The Committee recommends that the Ministry and DGCA should come forward to regulate baggage charges and airfares in such a way to facilitate and benefit the air
passengers,” it said in its report.

A senior official of a private airline, however, sought to disagree with the recommendations especially with the demand to regulate the airfares, even as he felt that the airlines can re-assess their “revenue basket” so as not to pinch the passenger with extra baggage charges. Barring Air India, private carriers charge beyond 15 kg. Talking to Odisha Bytes, the official said there can be some maneuvering in his aspect. Air India charges in excess of 25 kg.

Airline fares, he maintained, are already on the lower side and competitively priced as compared to other airlines globally and this is practically one of the reasons why Indian carriers are bleeding. What the committee could have recommended was to be bring the airline fuel prices under the GST regime, thus giving a big relief to the airlines and bringing down fares. Airline fuel or ATF nearly constitute 40 per cent of an airline’s operational cost.

In it report, the committee noted that even after 50% reduction of the ATF prices, the airlines have not passed on the benefit to the consumers.