Mumbai: Believe it or not. Today, when the airline industry is under fire for soaring fares, a one-way air ticket from Mumbai to Jaipur for March 3, 2011, is currently available at a base price of Rs 125. Though with taxes and other charges, the total fare comes to Rs 2,281 on low-fare carrier GoAir’s website. Similarly, a Mumbai-Delhi flight on Jet Airways website displays Rs 3,333 as fare (all inclusive) on March 3, 2011.
Airlines want the directorate general of civil aviation (DGCA) to take note of low fares available on airline websites if the passengers book in advance. “Airlines have a secret pricing formula for seats offered at different times for the same flight and destinations,” said an official of a full-service carrier.
Though airlines do not announce discount schemes, travellers can get base fares of as low as Rs 500 if they book in advance.
“The aviation industry is cyclical. Profitability in a good year has been low, in the range of 8-10% profit after interest and tax. Also, the industry has not recovered the cost of capital deployed while expanding operations,” the official added.
Earlier this week, airlines had proposed Rs 10,500 as fare for distances less that 750 km (eg Delhi-Chandigarh, Chennai-Coimbatore), Rs 14,550-19,500 for 750-1,000 km, Rs 17,000-25,000 for 1,000-1,400 km and Rs 22,000-40,000 for flights exceeding 1,400 km (eg Delhi-Bangalore, Delhi-Kolkata). This formula was rejected by the civil aviation ministry.
04/12/10 Shaheen Mansuri/Indian Express
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