Dec 7, 2010

DGCA clipping our wings, say airlines

New Delhi: Low-cost air carriers (LCCs) such as IndiGo, SpiceJet and GoAir say
the Directorate General of Civil Aviation
(DGCA) is being mindless on basic
competitive concerns regarding
passenger fares.
The LCCs were summoned by DGCA yesterday to be told to not only
provide details of route-wise fares but
to also detail by Wednesday those for
each bucket of seats. Seats are
grouped into different categories,
each at a distinct price; the categories are referred to as buckets.
Top LCC sources — none would come on record — say making public such detail would destroy their competitive
edge. And, that no country in the
world asks for such figures to be
disclosed.
They contend they’ ve not been transgressing Rule 135 of the Aircraft
Act, on which basis DGCA has asked
them to give out the details. “ The rule merely says we must publish our
tariffs (rates), which we all already do,
on the net. It does not tell us to give
away competitive information — what our bucket-seat prices are, ” said a top executive.
Aviation ministry sources say the DGCA
would be meeting the full service
carriers (FCCs)— Jet, Kingfisher, Air India — tomorrow for a similar discussion and direction.

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