Airfares reduced by 61%, won't let airlines to indulge in predatory pricing: Scindia

Civil aviation minister Jyotiraditya Scindia has said that the airfares on certain routes from Delhi have been reduced by 14%-61%. This after, a meet with the airlines' advisory group on 5th June.

“I am happy to say that the maximum fares on flights connecting Delhi to Srinagar, Leh, Pune and Mumbai were reduced by 14-61 percent on June 6. The Directorate General of Civil Aviation (DGCA) and the ministry are monitoring the daily fares", Scindia said while addressing a press conference.

The civil aviation minister also said that the airlines would not be allowed to indulge in predatory pricing after the suspension of Go First flights. As per Scindia, there is a capacity squeeze after Go First suspended its flights. The ministry has now given permission permissions had been granted for the deployment of additional flights on 68 routes to ease the seat shortage, particularly on flights from Delhi to Srinagar, Mumbai, Pune, Ahmedabad and Leh.

The aviation ministry uses an algorithm that works on Reservation Bucket Designator (RBD) to determine the ticket pricing. But airlines have the authority to determine airfares and various factors which are taken into account including market dynamics and season. However, Scindia explained that those companies also have a social responsibility and that there should be a limit on airfare hike.

He also emphasised on keeping the airfares on check for destinations that had unforeseen incidents, that includes Imphal in the aftermath of violent clashes between different tribal groups, and Bhubaneswar following the train crash in Odisha’s Balasore district.

"There have been some unforeseen incidents in Manipur and now in Odisha, fare rates should be taken care of. Apart from these, the fare rate remains maximum from Delhi to cities like Srinagar, Leh, Mumbai, Pune, Ahmedabad, and Bengaluru," Scindia said.