Air fares in India are not consistently fixed as experienced by a large number of air travelers. For instance, consider an air fare of 1 adult, economy class between New Delhi and Patna :
Date of booking - 18th August
 |
| A wet Kolkata airport |
Air fares available as per date of travel -
19th August - Rs 7268
10th September - Rs 2525
13th October - Rs 3725
7th November - Rs 7007
As the travel date approaches, the fares increase further. It is a similar story on other sectors also.
It reveals that the airlines have no other choice but to charge as per the market demand. The airlines and the authorities could have introduced more number of flights when they see a surge in demand and they get sufficient time to schedule their plans.
Consumer rights activist Bejon K Misra has raised this issue
of “arbitrary” fixing of fares by the airlines through a PIL seeking capping of
air fares charged by airlines in the country. The PIL mentions that the
authorities, including the civil aviation regulator, the Directorate General of
Civil Aviation (DGCA), were acting as “silent spectators” to the “arbitrary”
fixing of fares by the airlines
When summoned, one of the respondents, the DGCA, in its
response submitted its reply through an affidavit in the Delhi high court as:
- that the airlines in the country are not charging fares
that are unlawful, discriminatory or exorbitant,
- the ticket prices change according to market forces, and
- under the Aircraft Act it was not empowered to make
“financial regulations” with regard to air fares.
and urged the court to dismiss the plea since the
petitioner’s views regarding charging of exorbitant airfares by private
airlines have not been substantiated as the prices charged by them do not
exceed the fare buckets (levels) displayed on their websites.
The DGCA had to explain the computation of 'dynamic' fares.
It said, “Fare increase with increase in demand for seats on any given flight
and as a flight’s available seat inventory diminishes, lower bucket fares
consequently may no longer be available. The airlines adopt a dynamic pricing
mechanism in which prices are changed depending on the day of a week, time of
day, numbers of days before the flight and other factors like number of seats
and departure time. The prevailing airline practices by private and government
owned airlines are same and in line with practices followed globally."
The DGCA further said, “It is denied that air fares charged
by the airlines are unlawful and discriminatory and that the respondents (DGCA
and the Centre) have shirked their responsibility.”
The petitioner, Bejon K Misra, in his plea raised the
importance of capping of air fares. He has said that capping of air fares or
guidelines to regulate them are necessary to ensure “greater transparency and
accountability” and “discourage profiteering and undue enrichment in the
business of civil aviation”.
He referred to the incident of IndiGo airline cancelling a
large number of its flights due to which its passengers were left in the lurch
and had to book tickets at the last minute on other airlines at “exorbitant
prices”.
Misra has sought that airlines should not be allowed to
charge more than a justified hike in the advance booking fare as airlines often
charge more than 10 times the base rate when there is a shortage of seats.
A bench of Chief Justice Rajendra Menon and Justice V K Rao
heard the case on 17th August and listed the matter for further hearing on
October 9.