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Traders body urge Suresh Prabhu to look into high airfares

"It has been seen that after the shutdown of Jet Airways, other airline carriers are taking advantage of the demand and raising their prices illogically. Even the budget airlines are more forward in raising the prices," the Confederation of All India Traders (CAIT) said in a letter to Prabhu.

Traders body urge Suresh Prabhu to look into high airfares

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Published : May 9, 2019, 7:09 PM IST

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Updated : May 9, 2019, 7:19 PM IST

New Delhi: Expressing serious concerns over spiralling airfares, traders' body CAIT on Thursday wrote to Civil Aviation Minister Suresh Prabhu seeking introduction of a price control mechanism to cap the upper limit of fares.

CAIT urges Suresh Prabhu to check surge in airfares

"It has been seen that after the shutdown of Jet Airways, other airline carriers are taking advantage of the demand and raising their prices illogically. Even the budget airlines are more forward in raising the prices," the Confederation of All India Traders (CAIT) said in a letter to Prabhu.

Read more:India's domestic passenger market falls to 3.1% in March: IATA

Running into a debt of more than Rs 8,500 crore, Jet Airways has shut down operations temporarily after lenders decided against extending emergency funds for its survival.

"We believe the government can recommend the upper limit for fares. This will not only prevent airlines from charging exorbitant fares but will also go a long way in fulfilling the vision of Prime Minister Narendra Modi to make flying affordable for every common citizen and enhance ease of doing business," CAIT Secretary General Praveen Khandelwal said.

New Delhi: Expressing serious concerns over spiralling airfares, traders' body CAIT on Thursday wrote to Civil Aviation Minister Suresh Prabhu seeking introduction of a price control mechanism to cap the upper limit of fares.

CAIT urges Suresh Prabhu to check surge in airfares

"It has been seen that after the shutdown of Jet Airways, other airline carriers are taking advantage of the demand and raising their prices illogically. Even the budget airlines are more forward in raising the prices," the Confederation of All India Traders (CAIT) said in a letter to Prabhu.

Read more:India's domestic passenger market falls to 3.1% in March: IATA

Running into a debt of more than Rs 8,500 crore, Jet Airways has shut down operations temporarily after lenders decided against extending emergency funds for its survival.

"We believe the government can recommend the upper limit for fares. This will not only prevent airlines from charging exorbitant fares but will also go a long way in fulfilling the vision of Prime Minister Narendra Modi to make flying affordable for every common citizen and enhance ease of doing business," CAIT Secretary General Praveen Khandelwal said.

Intro:New Delhi: The Confederation of All India Traders (CAIT) Thursday while expressing concern over surge in air fares has in a communication sent to Suresh Prabhu, Union Civil Aviation Minister said that with the shutdown of Jet Airways, different airline carriers have raised their air fares quite exorbitantly and screwing the customers with high fairs much against the principal of affordable pricing.

CAIT national president BC Bhartia and Secretary General Praveen Khandelwal in the communication has drawn the attention of Prabhu towards the fact that over the last few months, there is a sudden surge in air fares for travel within the country and this is a matter of grave concern because not only does it pinches the pockets of a common citizen but also it is a serious impediment to growth of business and trade. This prevailing situation is also against the basic principles of dynamic fare price mechanism. The letter further added that it has been seen that after shutdown of Jet Airways, the other Airlines careers after taking advantage of the demand and rising their prices in logically. Even the budget airlines are more forward in raising the prices.

Body:In the letter, CAIT said that the different air carriers are charging unreasonable fares on pretext of dynamic price policy without any sound logic or basic fundamentals. In any airline for the same seat there is huge gap of shares within few days which establishes the fact that airlines are taking undue advantage which needs to be checked in large interest of the air fliers.

Raising there concerns over surge in air fares, trade leaders said that most of the travel that is done by the business and trading community is not planned in advance and they resort to last minute bookings. In the current scenario, last minute spot fares are as high as Rs 20,000 one way for Delhi-Mumbai sector or Delhi-Chennai sector. Now this kind of pricing is extremely unfair and unsustainable for a small trader or any common citizen of the country.

Conclusion:"We believe that the government can recommend the upper limit for shares this will not only prevent Airlines from charging exorbitant fares but will also go a long way in fulfilling the vision of PM Modi to make flying affordable for every common citizen and enhance ease of doing business," added CAIT in a letter.

The CAIT also suggested to put in place a price control mechanism that will cap the upper limit of shares that the airlines are charging. Even though the fare system is dynamic and based on demand supply but there has to be some basic fundamental and logics for increasing the fares.

Last Updated : May 9, 2019, 7:19 PM IST

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