Subscribe Now

travelers today

Home » News

Airplane Tickets: Indian Government Working on Proposal to Cap Lowest and Highest Air Fares

Travelers Today       By    Antranig Dereyan

Updated: Feb 11, 2013 03:55 PM EST

Text Size: A A A

An Air India passenger plane
A traveler was very upset when she reportedly got called an idiot while on an Air India flight.(Photo : Reuters)

With airline fares reaching ridiculous amounts over the past several years, the Civil Aviation Ministry of India is considering a proposition that would cap the highest and the lowest ticket prices, according to economictimes.indiatimes.com.

This would not sit well with the airline industry that with rising fuel costs are losing money as is. If this cap proposal is executed, there aren't enough fees to create for the airlines to recoup what they would lose.

One of those fees being fought over is transaction fees.

Share This Story

"Weeks after the apex court banned airlines from charging transaction fees in any form, travel agent associations TAAI and TAFI today said they will approach the court shortly seeking a review of the directive," according to firstpost.com.

"We will petition the apex court for modifications in its directives and interim measures. We want a status quo ante," Travel Agents Association of India (TAAI) legal advisor Bhupendra Singh Chauhan told reporters here.

The issue over transaction fees has been argued for years.

"Both the industry bodies have long been fighting for reduction in agency fees by domestic carriers and abolition of the commission by foreign carriers. Chauhan said the petition is expected to be filed by this week adding, "the court directives have been left open for interpretation," reported firstpost.com.

As for the cap, "The Ministry is working on a mechanism to fix the highest and the lowest price bands, with Civil Aviation Minister Ajit Singh expressing concern over the sharp rise in fares, especially during peak hours and seasons, forcing hapless passengers buying tickets at the last moment to shell out large sums," states economictimes.indiatimes.com.

 

Indian Power Minister Sushilkumar Shinde (L) and Civil Aviation Minister Ajit Singh (R) shakes hands during a meeting in New Delhi
Indian Power Minister Sushilkumar Shinde (L) and Civil Aviation Minister Ajit Singh (R) shakes hands during a meeting in New Delhi. (Reuters)

An example:

If one were to look for a domestic round-trip fare today, the fare would run anywhere between 15,000-19,000 Indian Rupee ($270-$360), which is up from a year ago, according to economictimes,indiatimes.com.

"Airlines are charging more to recover costs and avoid bankruptcy. The costs in this industry are very high and the margins thin. The airfares are dynamic and increase with the rise in demand for seats," Singh said, reported by economictimes.idiatimes.com.

If this measure to cap prices goes through, other countries are soon to follow with similar restrictions. So, the battle takes on that much more importance for the airline industry, because, as the saying goes:

If one falls, the rest will go down like dominos and if the airline industry goes down as a result of this proposal, they will be down for the 10 count. 

© 2014 Traverlers Today, All rights reserved. Do not reproduce without permission.
Featured Video : Greenwich
Join Our Conversation
Don't Miss..
JEFFREYSDAVIS_ANIM
Travel Tips I Didn't Know That : The London Tube

Secrets of the Underground: Top 10 Tips For Riding The London Tube

Top 10 Tips For Riding The London Tube

Leisure Umami Burger

Umami Burger [PHOTOS]: Craved By Mila Kunis In Burbank. What Is In This Burger That Makes Even Stars Crave For Its Taste?

Umami Burger with Ashton Kutcher, that’s what Mila Kunis had in her agenda on April 12, Saturday night while in one of her pregnancy cravings.

News Mount Everest

Mount Everest Deaths: Avalanche Kills 9 People, While 3 Are Injured And 9 Still Missing. What Happened?

Mount Everest deaths from the avalanche Friday, April 18 reached 9 people already.

News Auburn University

Auburn University Bomb Threat Update: "Threatening Message" Sparks Chaos In A University In Alabama

Auburn University bomb threat in Alabama had school officials cancelling classes on Wednesday.

News bees

Allegiant Air Flight Forced to Turn Back to Las Vegas After Hitting Swarm of Bees

An Allegiant Air flight from Las Vegas to Duluth, Minn., was forced to turn back to Sin City because it hit a swarm of bees, which caused a terrible smell to fill the plane.

Travel Tips An Alitalia plane approaches to land at Fiumicino International Airport in Rome September 25, 2008.

Memorial Day Weekend 2014: The Best Days to Fly During Holiday Weekend

Memorial Day will be here before you know it and that means it's time to start planning your trips for the holiday weekend and Travelocity is helping travelers make plans that could save them money.

News Allegiant Airlines

Allegiant Air Offers Giant Seats at 25 Inches Wide on Select Flights to Hawaii and the Western U.S.

The airline has added extra large seats to some economy rows on Boeing 757 planes that make long-haul flight.

News Boston Marathon

Boston Marathon Qualifying Times: How To Get Into The 2014 Boston Marathon And What Happens Now With Stricter Security

With the Boston Marathon bombing incident last year, stricter security is enforced and most probably stricter enforcement of the Boston Marathon Qualifying Times.

Travel Tips John W. Schulze

Travel Airfare: Top 5 Tips On Searching The Best Airfare For Your Vacation

Travel airfare, despite hundreds of promos available, isn’t all they’re cracked up to be. On the one hand, some routes are still higher than they were in previous years, and some even keep getting higher.

ADVERTISEMENT

Travel Tips

The Modern Guide To Tipping

Tips on Tipping: How to Tip in Foreign Countries

Basic tips on tipping in foreign countries.

Subscribe to our newsletter

Receive the latest travel news, reviews, and more..

Want more Travel?

Most Popular

Florida Sinkhole Swallows Family Yard, Driveway Hours After It Was Completely Filled In [+VIDEO]

Florida Sinkhole Swallows Family Yard, Driveway Hours After It Was Completely Filled In [+VIDEO]

A Florida sinkhole has swallowed a family yard and their driveway just hours after the large ground hole was completely filled in. Authorities now fear that if sinkholes in the area continue to be a big problem, local residents will be requested to evacuate their homes, WebProNews reported Sunday.

Malaysian plane found news not yet final

Phllip Wood Flight 370 Hijacking Conspiracy: Arises Amidst Missing Malaysia Airlines Plane Search. Is The Theory True?

Phillip Wood Flight 370 hijacking conspiracy started spreading on the Internet this week. The US says the Phillip Wood Flight 370 hijacking conspiracy theories are completely ‘baseless’ despite some people believing it to be true.

baby camel

Rare Baby Camel: Little Bactrian Ilias Makes Debut at the Budapest Zoo

A rare baby camel made his big debut at the Budapest Zoo, the oldest zoo in the world.

20 Secrets You Don’t Know About Flying Confessed by Pilots and Flight Attendants

Travel Tips: 20 Secrets You Don’t Know About Flying Confessed by Pilots and Flight Attendants

Travel tips actually confessed by employees of airlines can be hard to come by these days. Below are some of the secrets of pilots, flight attendants, and engineers when it comes to flying.

MEXICO CITY EARTHQUAKE TODAY CAUSES A STIR AMONG VACATIONING MEXICANS, TOURISTS AS THE GROUND GRUMBLED FOR 30 SECONDS AT 7.2 MAGNITUDE [+VIDEO]

Mexico City Earthquake Causes A Stir Among Vacationing Mexicans, Tourists As The Ground Grumbled For Seconds At 7.2 Magnitude

A Mexico City earthquake today caused a stir among vacationing Mexicans and tourists for the Easter holiday. The tremor was felt for 30 seconds and was reportedly at 7.2 magnitude. No major damage or casualties were documented as of late.

MERS Virus

MERS Virus Update: Number Of Deaths Rise in Saudi Arabia, Arm Yourself With These Facts

MERS Virus update leaves the public with the knowledge that the victims of the virus are rising since it killed a man in Saudi Arabia. There has been no official confirmation as to the exact origin of the virus, but reports on the MERS Virus update say that its origins may be linked to camels.

Swim With Adorable Pigs In Big Major Cay Island

Travel Bahamas Pig Beach Swim with Adorable Pigs in Big Major Cay Island

Travel Bahamas Pig Beach and get the best experience swimming with adorable pigs. This thought might be unheard of as a travel experience. Nowadays swimming with stingrays, dolphins, whales and even sharks is getting to be popular, but wild pigs? Well, travel Bahamas Pig Beach and you’ll enjoy swimming with the wild pigs as they roam free.

Youths fight with pillows during a flash mob in a park in central Kiev July 31, 2013. Some 100 people participated in a social media flash mob called "Pillow Fight". REUTERS/Gleb Garanich

Staycation Summer - How to have Holiday Fun for a Very Small Sum

If you're finding the economy's let you down substantially this year, and you can't afford to go on vacation, take heart that you're not the only one. In my 'Staycation' articles, I'll be helping you find cheap and free ways to have fun this summer.

Find Us on Facebook

travelers today

© Copyright 2014 Travelers Today All Rights Reserved.

Subscribe to our newsletter