Taking note of arbitrary airfare hikes by airlines during festival seasons, a Parliamentary Committee on Transport, Tourism and Culture has asked the Ministry of Civil Aviation to fix an upper limit for the airfare for every sector. The panel rued that airlines have not passed on the benefit of 50 per cent reduction in Aviation Turbine Fuel (ATF) prices to consumers.
“A deregulatory environment does not mean unlimited freedom of exploitation. Windfall profits cannot be taken from the hapless passengers, especially from those working class passengers who are travelling to the Gulf. The Ministry of Civil Aviation has a social responsibility towards its citizens and economic viability cannot be the only criteria for decision making,” the committee said in its report.
“The Ministry of Civil Aviation though aware of the rampant exploitation is not showing any proactive role in regulating airfares,” the Parliament panel said.
The committee was informed that the domestic airline pricing runs at multiple levels, bucket or reservation booking designator, which is in line with the practice followed globally. The lower fare in the fare bucket is available for advance booking.
“As time lapses and date of journey approaches, the fare in higher side of fare bucket is made available as per the respective airline policy. Advance Purchase Scheme offers low fares when tickets are booked 90 days, 60 days, 30 days, 15 days and seven days prior to departure.
Under immediate purchase, fares are offered in multiple levels or buckets (up to about 14 levels) and the fares move to higher buckets as the lower ones get filled,” the committee said.
A Chief Executive Officer of an airline informed the committee that as regards pricing of air tickets, it is a deregulatory environment and the airlines are free to price anything. Theoretically, there is no cut-off price. The tickets are priced at cost plus basis.
Deposing before the committee, the Secretary, Civil Aviation submitted that airfares are not controlled by the Government, but varies with the market forces of demand and supply and that this is a global practice in the aviation industry.
The members of the committee have also raised the issue of charging high airfares by airlines to the Gulf countries during festival seasons and on the eve of New Year.
On the incidents of misbehaviour by airlines staff, the committee also noted that recently there were many incidents of manhandling, discourteous and rude behaviour by airlines staff, both ground staff and cabin crew. “Some of them were reported in the media and a large number of them went unreported. While narrating some of the incidents of misbehaviour in airlines, especially in Indigo, majority of the members opined that the attitude of airlines staff is very condescending, often uncooperative and on many occasions, downright rude,” it said.
As per the Ministry’s data, 606 complaints were lodged against airlines in September this year. The number shot up to 656 in October this year. While 30.5 per cent of the flyers blamed customer service, 16 per cent pointed fingers at flight problems like sudden cancellation and delay, 22 per cent had issues with their baggage and 7.5 per cent did not like staff behaviour.
The committee opined that merely taking strictest action against the employees does not absolve the airline of its guilt of the incident. “The problems affecting the airlines are not personal; it is institutional. An institution like Indigo has to develop a consumer-friendly approach in dealing with their passengers,” it said.
The committee believes that being a leader in market share, Indigo needs to look inward and find out the reasons for the discourteous attitude and rude and indifferent behaviour of their employees, whether it is their cabin crew or the ground staff.
Keeping in view the recent incidents of misbehaviour of airlines staff including the manhandling of a passenger by staff of Indigo Airlines, the committee emphasised on the need for soft skills training and functionality training for all employees across airlines.