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India keeps a watchful eye on airfares

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DELHI, 1 April 2022: India’s aviation authorities reminded domestic airlines this week that they continue to monitor airfares on a monthly basis to prevent sudden price surges and also to promote transparency.

The Directorate General of Civil Aviation emphasised earlier this week that airlines should display on their websites the tariff sheet route-wise across their network in various fare categories and in the same manner it is offered in the market.

In addition, the DGCA noted its Tariff Monitoring Unit continues to monitor airfares on specific routes on a monthly basis to ensure that the airlines do not charge airfares outside a range declared by them.

Even though the government does not regulate airfares under normal circumstances, the Covid-19 pandemic adversely impacted businesses’ revenue streams, including the aviation sector. In response, the government introduced fare bands with upper and lower limits as a special measure to serve the dual purpose of protecting both travellers and airlines.

Presently, fare capping is applicable on a rolling basis on a 15-day cycle. Decisions regarding the domestic scheduled operations and the possible relaxation in fare capping are subject to the prevailing Covid-19 situation, the status of airline operations and passenger demand for air travel.

Fare check Delhi-Mumbai route

During April, a fare check on the popular Delhi-Mumbai route showed variations from a low of USD76 to a high of USD97 for one-way economy travel.

According to a Google flight search, Spicejet filed the lowest fare at USD76, but for those who worry about carbon emissions, the flight flagged 13% more kgCO2 when compared with the route’s average of 134 kgCO2.

Vistara and Indigo, both quoting USD97 fares, operated at the average carbon emission level flying the route. AirAsia quoting a USD96 fare, scored a minus 29% carbon emission level when compared with the route average, well below all rivals.

Air India quoted a fare of USD94, but the carbon emission level was the highest of all airlines serving the domestic route at 29% over the average. AirAsia at -29% is the winner when the topic is carbon emission levels and not just a cheap fare.

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