The government has asked airlines to furnish route-wise tariff on their entire network in the beginning of each month to prevent the carriers from jacking up prices abruptly because of higher demand.
In a circular, the directorate-general of civil aviation (DGCA) has asked the airlines to “furnish a copy of the route-wise tariff across its network in various fare categories, in the manner it is offered in the market, to the DGCA on the first day of every calendar month”.
The circular said any “significant and noticeable change”, in the established tariff already filed, should be reported to the DGCA “within 24 hours of effecting such changes”.
The regulator has also asked the airlines to publish fares on their websites or in daily newspapers on a regular basis.
The circular came in the wake of a sudden jump in fares, effected by airlines, during the peak travel season, causing harassment to travellers.
Last year, the DGCA, suspecting cartelisation among airlines after some of them withdrew their low-end air fares, had directed all scheduled domestic carriers to give details and justification for their decision to “simultaneously” raise prices.
In February 2009 also, the DGCA had shot off letters to all carriers asking for information regarding the hike in fares and to ensure transparency through advertising.
“Insufficient and inadequate information available in the public domain on airfares”, and reports of scheduled airlines charging excessive high tariff for flights across their network during the high demand period were “causing lot of inconvenience to the travelling public and drawing adverse comments on airfares”, the latest DGCA circular said.
It asked the airlines to maintain all records pertaining to established tariff in its office for inspection.
The move comes at a time airlines in the Asia-Pacific region are expected to corner the maximum profits.
The International Air Transport Association (IATA) has projected a global profit of $8.9 billion in 2010.
Asia-Pacific carriers are expected to post a $2 billion profit this calendar year compared with $3.5 billion in North America, $1 billion in Latin America, $400 million in West Asia and $100 million in Africa, the IATA said.
However, the growth witnessed this year was not likely to continue in 2011 because of several factors. While consumer spending was not expected to pick up, joblessness was high and consumer confidence was falling in Europe and North America.
According to its preliminary forecast, the IATA expects profit to drop to $5.3 billion in 2011.
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