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.
Join Our Conversation

ADVERTISEMENT

Travel Tips

Prince Edward Island, Canada

Fall Cruises: Better Than Land Tours? It Gives Guests ‘A European Experience Without Leaving North America’

Fall cruises for foliage in the northeast are now becoming more and more popular as each year goes by. The foliage that is part of the tour is unlike any other place in the country. In fact, more guests are even paying good money to cruise the rivers, as well as the oceans, in order to peep leaves instead of having to brave today’s highly crowded roads and hotels on land.

Subscribe to our newsletter

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

Want more Travel?

Most Popular

CDC is rethinking of their approach towards the Ebola virus while staying positive that the virus can be transmitted through direct contact. New rumors suggest that the virus is airborne after two Dallas nurses became infected despite of wearing their pro

CDC To Modify Approach in Ebola Infection As Virus Becomes Airborne

Centers for Disease Control and Prevention (CDC) of the U.S. is trying to reconsider its approach to Ebola patients after several reports suggest that the fatal virus could be airborne.

California Drought Map

California Drought Map Reveals 58% Of State Suffers Deficiency Of Water Supply Amid Imminent Winter Season

California's drought map still shows an alarming phenomenon at the Golden State wherein 58% of the area is suffering from deficiency of water supply, be it atmospheric, surface or ground water.

Daniela Poggiali

Nurse Kills 38 Patients Because She Got Annoyed; Co-Workers Say Italian Nurse Daniela Poggiali Is 'Cynical And Vindictive'

Nurse Kills 38 Patients - Italian nurse Daniela Poggiali is one healthcare professional you should be wary of if ever you get confined in a hospital in Italy. For one thing, she is notorious for killing up to 38 patients after she got completely annoyed of them or of their families.

Cattle Return From Alpine Summer Grazing

World's Tallest Cattle Found In Illinois, How Tall Is Blosom The Cow?

World’s tallest cattle is found in Illinois. Owned by Patty Hanson, Blosom the cow has been named Guinness World Records’ tallest cow. How big and tall exactly is Blosom?

Grizzly Bear

Man, 56, Attacked By Bear Shot Accidentally By Hunting Partner Who Tried To Save Him From The Beast

A man attacked by bear was shot by his friend while the latter was attempting to spare him from the brutal attack of the beast.

Debris field spotted on radar at time of the Louisiana loud boom

Louisiana Loud Boom: Mysterious ‘Sonic Boom’ In The Sky Rattles Residents, ‘Debris Field’ Spotted, What Is The ArkLaTex ‘Boom’?

The Louisiana loud boom which was heard and rattled many north eastern Louisiana residents is as of this moment still left unexplained. However, now the National Weather Service has added that whatever the cause of the Louisiana loud boom, it has left a debris field.

Illness Observation

Ebola Airborne CDC: Widespread Outbreak Possible, More Contagious Virus Than Thought

The Executive director of the Association of American Physicians and Surgeons, Dr. Jane Orient, claimed the world is dealing a different kind of Ebola virus, one which is more potent and can be transmitted in air via droplets.

Brazil is currently treating and monitoring its first suspected case of Ebola. A 47 year-old man from Guinea reportedly manifest fever withing the 21 day-incubation period of the virus.

Brazil Confirms First Suspected Ebola Case

Brazil treats its first ever suspected case of Ebola while waiting for the results of a blood test which is due to be released on Saturday.

Ebola Press Conference Boston Logan Airport

Ebola In Boston: Two Ebola Mass. Scares Raises Fears Despite Braintree Patient Declared Not At Risk, What Is The Different Types Of Ebola Risks?

Fears over Ebola in Boston have heightened after two Massachusetts scares flared up over the Columbus Day weekend. Raised concerns over Ebola in Boston have since prompted holiday press conferences and reverse 911 calls to reassure the public.

American Airlines jet landing at DCA

American Airlines Flight Depressurized Due To Cracks In Cabin Walls; Plane Had Emergency Landing

American Airlines had to have an emergency landing after its cabin walls started to break apart as its passengers, absolutely terrified, had no choice but to look on and shout for help. One of the passengers, James Wilson, said that he felt something was wrong when the fuselage started to shake violently and heard some popping noises outside the plane.

Find Us on Facebook

travelers today

© Copyright 2014 Travelers Today All Rights Reserved.

Subscribe to our newsletter
Real Time Analytics