Lok Sabha Question No. 4314 (UNSTARRED), answered on 2019-07-18
Subject: Air Fare Hike
Ministry: CIVIL AVIATION
Asked by: H. Vasanthakumar

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO. : 4314 (To be answered on the July 2019) 18th

## AIR FARE HIKE

4314.

SHRI H: VASANTHAKUMAR

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- 6) whether a high air fare as well a$ high cancellation charges are being charged by airlines for aii the routes across the country;
2. (c) whether the Government has received any complaints from the travellers in this regard;
- (6) ifso the details thereof and the reasons therefor along with the action taken the Government in this regard; by
4. (d) ifso,the details thereof and the action taken by the Government thereon; and (e) the steps proposed to be taken to have a reasonable air fare/cancellation/ reschedule charges in all airlines across the country including foreign trips?

## ANSWER

Minister of State (IC) in the Ministry of CIVIL A VIATION

(Shri Hardeep Singh Puri)

by airlines have been received {om various guarters from time to time Howevers as per prevailing regulation; air fare is neither regulated nor established by the Government Airlines are free to fix the reasonable tariff under the provision of Sub-rule (1) of Rule 135, Aircraft Rules 1937 into consideration the various profit and the generally Prevailing tariff; The airline pricing system runs in multiple levels (buckets % Reservation Booking Designator (RBDs)) Which are in line with practice followed globally: The prices are fixed by airlines keeping in mind the market, demand, seasonality and other market forces. The airfare increases with increase in demand of seat as the lower fare buckets sold out fast when bookings are offered by airlines  Some of the airlines have introduced 90, in addition to existing advance purchase schemes of 60 30 etc-iin which highly discounted fares are offered which would entail traveling even during peak seasons on low fares: The fare structures stated above have been displayed by airlines % their websites; The airlines remain compliant to the Sub Ruie (2) of Rule 135 %f the Aircraft Rules, 1937 as long as the fare charged by them is in line with fare displayed on their website. As per prevailing regulation, all scheduled domestic airlines are required to display route-wise and category-wise taking being get days, days; days fares on their respective\_websites: With a view to maintain transparency, DGCA monitors airfares on certain routes selected on random basis to ensure that the airlines do not charge airfares outside the range declared by them: The fare remained well within the fare bucket uploaded by the airlines on the respective websites. In case, any steep fare hike is observed, Ministry of Civil A viation/Directorate General of Civil A viation(DGCA) sensitizes the airlines for necessary intervention: Though, Government no longer regulates the fares that are charged, it is ensured that considerable information is provided to the public in a trelsparent manner with respect to airline fares by inter-alia issue of following guidelines: yet

~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 ibid For both domestic and international markets, carriers must provide disclosure of the full price to be paid; including government taxes/fees carrier charges, as well as fees payable to airport operators in their advertising; on their websites and 0n the passenger's e-ticket confirmation.

Air Transport Circular 02 of 2016 requires carriers to disclose all fees for optional services on 'opt-in" basis through a prominent link on their homepage

~To ensure\_transparency and aid the traveler make an informed choice, Directorate Generai of Civil Aviation (DGCA) vide Air Transport Circular 02 0f 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 sectorsO This €s done on a monthly basis and updated whenever there is any revision Of fares: DGCA also ensures the fare sheet is updated and tracks any deviation between fares offered and uploaded on the website on a regular basis.

With regard to cancellation fees, it is stated that DGCA has issued the CAR, Public Transport Undertakings" wherein the following provisions are included: Cancellation charges must be indicated prominently at the time of booking:

- ~The airlines shall not any additional charge to process the refund. levy
- ~Under no circumstances, the airline 0r its agent shall cancellation charge more than the basic fare plus fuel surcharge. levy

(e): The DGCA monitors the fare regularly: In addition, the Government provides a congenial atmosphere S0 that the airlines can expand and grow, thus increasing the available seats which in keeping the fares at reasonable levels. The Government also sensitizes the airlines on the need for keeping the fares at reasonable levels. helps