November 13, 2007

Airline rates are full of air, bubble


A bubble always bursts and that is what is witnessing in the aviation tickets in India. The bubble is gone and people are returning to old ways of Indian Railways. But what is not palpable is the cheating process the airlines adopt to woo the vulnerable customers. But to my surprise, I found India is not the cheating capital of the world. In fact it is the European Union where a study by European Commission has found excess charging, failure to show taxes and other charges in the original fare etc. The difference between the Indian government and the European Union is that the latter could force offending websites to close next year if they fail to improve.
Try an airline search and find out why taxes are three times the airline fare? Can it be true to be believed? If yes, why should the airlines operate for such a small amount? Take the case of the figure mentioned here. If an Airbus A 320 or Boeing 737 can carry on an average 150 passengers and given the fact that there is 80% occupancy, the total amount that the airlines earns for a flight from Ahmedabad to Goa with a change over in Mumbai is Rs 1,70,000. With four landings and four take offs and a host of other charges, is this a viable option? If it is true, then why is that the taxes are not bifurcated? Why is that taxes differ from airline to airline?
A classic case of how British Airways made a mockery of their promotional schemes can be read in my earlier entry. Read it here

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