The Civil Aviation Ministry has stepped in to curb exorbitant dynamic pricing resorted to by airlines for flights operated to and from the Thiruvananthapuram, Kochi and Calicut international airports to West Asia during the festive season.
Responding to the demand of the Non-Resident Keralites (NorKs) raised by the Chief Minister, Pinarayi Vijayan at the meeting of the chief executive officers (CEOs) of 20 airlines convened in the capital on Monday, Union Civil Aviation Secretary Rajiv Nayan Choubey said bilateral negotiations have begun already to help airlines operate additional services to cater to the demands of the NoRKs during the festive season such as Onam.
“We have sought inputs from airline companies on whether they can make available aircraft amidst the winter and summer schedule. A decision to provide more seats during the festive season will be taken based on the feedback from the operating airline,” Mr. Choubey said after the meeting.
“It is a good offer and a positive one,” the Chief Minister responded to the suggestion mooted by the Civil Aviation Secretary and the willingness of the airlines to reduce the fare if more seats are provided. They should desist from fleecing the NoRKs in the name of dynamic pricing, Mr. Vijayan said.
The State is also ready to reduce the 29% Value Added Tax VAT on the Aviation Turbine Fuel as demanded by the representatives of airlines, the Chief Minister said while briefing the mediapersons after the two-hour-long meeting. Foreign airlines are demanding a reduction of 4% and domestic carriers 1 % for offering regional connectivity to the State.
The Chief Minister also informed the airline representatives of the positive steps taken by his government for the growth of civil aviation sector and on the proposed Sabarimala airport.
At the meeting, Mr. Vijayan also urged the companies to reconsider the high air fares being levied by domestic carriers for flights between the airports in the State.
Over a dozen airlines expressed keenness to operate to the fourth international airport coming up in Kannur and scheduled for commissioning by mid-2017.
Acting on a suggestion of Mr. Choubey to appoint a nodal officer to liaison between the airlines and the stakeholders, it was decided to set up a working group with representatives of State, Centre and airlines. Transport Secretary will coordinate.
