The Hindu : Front Page : Airlines asked to explain fare hike

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Friday, Feb 13, 2009
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Airlines asked to explain fare hike

Vinay Kumar

NEW DELHI: The Directorate-General of Civil Aviation (DGCA) has written to all scheduled domestic airlines, asking for information on the recent fare increase by them and the need for transparency in fare advertising.

Referring to the hike, the regulatory body said it was brought to their notice that all scheduled domestic airlines simultaneously raised their fares in the second week of February.

The DGCA said it was not aware of the reasons for the simultaneous hike, especially when aviation turbine fuel prices were at a low level than they were in 2005. As such, the DGCA felt there appeared to be no rationale for hiking the fares.

It asked all airlines to furnish detailed information by February 14 to justify the increase in fares.

In a separate communication to all scheduled domestic airlines, the DGCA observed that airfares displayed on the respective websites of domestic carriers comprised several components such as basic fare and fuel surcharge, congestion charge and passenger service fee which are tabled loosely as taxes.

This aspect gives an impression to the travelling public that high fares are due to government taxes, it pointed out.

To ensure transparency in advertising, the DGCA has directed that airlines may display the fare as one composite fare, correctly indicating the charges accruing to the airlines.

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