The Confederation of All India Traders (CAIT) while expressing deep concern over exorbitant surge in air fares has in a communication sent to Shri Suresh Prabhu, Union Civil Aviation Minister said that with the shutdown of Jet Airways, different airline carriers have raised their air fares quite exorbitantly and screwing the customers with high fares much against the principle of affordable pricing. The different air carriers are charging unreasonable fares on pretext of dynamic price policy without any sound logic or basic fundamentals. In any airline for the same seat there is huge gap of fares within few days which establish the fact that airlines are taking undue advantage which needs to be checked in larger interest of the air fliers.
CAIT National President Mr. B.C.Bhartia & Secretary General Mr.Praveen Khandelwal in the communication has drawn the attention of Mr. Prabhu towards the fact that over the last few months, there is a sudden surge in Air Fares for travel within the country and this a matter of grave concern because not only does it pinches the pockets of a common citizen but also it is a serious impediment to growth of business and trade. This prevailing situation is also against the basic principles of dynamic fare price mechanism.It has been seen that after shutdown of Jet Airways, the other Airlines carriers are taking advantage of the demand and rising their prices illogically. Even the budget airlines are more forward in raising the prices.
Both Mr. Bhartia & Mr. Khandelwal said that we very well know that Air Travel is no more a luxury but more of a necessity for efficient and quick mobility within the country and it fosters economic growth considerably.
Most of the travel that is done by the business and trading community is not planned in advance and they resort to last minute bookings. In the current scenario, last minute spot fares are as high as Rs. 20,000 one way for Delhi- Mumbai sector or Delhi- Chennai sector. Now this kind of pricing is extremely unfair and unsustainable for a small trader or any common citizen of India.
Both trade leaders suggested putting in place a price control mechanism that will cap the upper limit of fares that the airlines are charging. Even though the fare system is dynamic and based on demand supply but there has to be some basic fundamental and logics for increasing the fares. Arbitrary & exorbitant price rise cannot be allowed to screw the consumers. “We believe that the Government can recommend the upper limit for fares. This will not only prevent airlines from charging exorbitant fares but will also go a long way in fulfilling the vision of Prime Minister Shri Narendra Modi to make flying affordable for every common citizen and enhance ease of doing business, thereby adding great impetus to the various initiatives of the Prime Minister such as the Make In India and Incredible India.”-said Mr. Bhartia & Mr. Khandelwal.
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