Implementation of the recommendations of the Parliamentary Standing Committee on Transport, Tourism and Culture, which presented its report in Parliament earlier this week, could help solve the problem of rising domestic air ticket prices and make it easier for airports across the country Connectivity may be offered.
The report was presented at a time when oil prices are heading north due to the Ukraine crisis and it is widely expected that domestic airlines will increase fares and thus put some of the burden on domestic passengers. some growth in its operations. Cost.
In fact, Ronojoy Dutta, Whole-time Director and Chief Executive Officer of IndiGo, issued a statement on Wednesday, saying that in the last few weeks, crude oil prices have reached near seven-year high of $140 per barrel. Europe. “This has led to a more than 50% increase in aviation turbine fuel prices since January 2022, including an 18% increase on Wednesday,” he said.
Fortunately for travelers, no domestic airline has announced a hike in domestic fares, but Dutta’s statement gives ample indication about cost pressures for airlines.
With the Ukraine war showing no signs of a hasty end, implementing the committee’s report will ensure airlines don’t use exorbitant fare hikes as an excuse to hike oil prices when the domestic aviation market bounces back. It has been and is expected to reach its pre-Covid daily passenger load of around 400,000 fliers a day.
In a well-considered and reasoned report, the committee says that it is pertinent that private airline operators should be given a free hand to decide airfares as they are governed by competition, also drawing the attention of the civil aviation ministry. Is. For the provision in the Aircraft Rules, 1937, which specifically mentions that “the fare must be reasonable and maintain a reasonable profit”.
Apart from this, the committee also says that a balance should be maintained between the commercial interests of the airlines and the interests of the passengers. It has said in its report that passengers should not be flown under the guise of commercialization and hence, it is recommended that the ministry should keep a close watch on fare pricing by airlines. It also recommends that at least for the same area, route and duration of flight, the ministry should issue guidelines to all private airlines to ensure that the fares are the same or there are minimal variations.
The committee also recommends that fixing different fares for the selection of seats on the same flight is “arbitrary and unfair”. Hence, it adds that the fare for all the seats on a flight should be the same. Private airlines charge a premium for certain seats such as Indigo or SpiceJet, the passenger flying in the first row has to pay extra in addition to the cost of the air ticket.
However, it should be highlighted that these are recommendations of the committee and the government is not bound to act on them and implement them. But these recommendations will serve as a signal for the government to develop a political consensus on the policy as opposition members are also on parliamentary committees.
Moving away from airlines, the committee also recommends that airports should have adequate connectivity with roads and railways to ensure optimum utilization of airports. The Committee stresses the urgent need to ensure that proper coordination is achieved among the concerned Ministries/Departments, airports are linked with all other modes of transport like road, metros and railways so that tourists/travellers can easily travel from airports to their destinations. reach the destination. and in a safe way. Further, the Committee is also of the view that the Ministry should collaborate with the State Governments and other stakeholders to ensure that land is allotted within a specific time frame to ensure adequate road and rail connectivity to airports. be done.
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