Logistics

Air fare surge due to demand-supply situation: DGCA

Shishir Sinha Ashwini Phadnis New Delhi | Updated on October 24, 2011

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Aviation regulator the Directorate General of Civil Aviation (DGCA) does not see anything wrong in the high fares charged by domestic airlines during the current festive season.

The fares being charged currently by domestic airlines have jumped manifold with travel agents pointing out that fares in some sectors like the Mumbai-Delhi sector have doubled.

The Director-General of Civil Aviation, Mr E.K. Bharat Bhushan, told Business line, “We have not observed anything abnormal in the fare. All the airlines are charging fares within the prescribed levels they publish on their Web site at the beginning of the month.”

After complaints from various quarters, the Ministry of Civil Aviation had asked the DGCA to look into the matter.

The current high fares are a result of the demand and supply situation, he added. Usually every year during the festive season, the demand is very high. Besides, the Formula One races near Delhi has put more pressure on the supply, the regulator added. The races begin on October 28.

Last year amidst complaints of airlines forming a cartel and raising fares together, the DGCA had set up a fare monitoring mechanism.

All the airlines were asked to publish their fares on their Web sites. The fares must be published at the beginning of the month, giving an idea of the upper and lower levels that the airlines charge.

The regulator felt that current surge in fares will settle once the season is over.

>Shishir.s@thehihindu.co.in

Published on October 24, 2011

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