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G-BYGB · Posted: Mon Mar 05, 2007 7:39 pm Post subject: Bad news!

I just saw this news on CNN IBN today and was upset.It seems that the Govt is gonna increase the apt charge at BOM,DEL and BLR during the rush hour.However it'll b 50% less from midnight to 5 am when the traffic is less.This means from now on the fares are going to increase and the LCC will be forced to levy this charge on the passengers.This will lead to a slight dip in the no.of passengers traveling by air.

One more info this increase in apt charge will be till the upgradation is complete on BOM and DEL apts.
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G-BYGB · Posted: Mon Mar 05, 2007 7:41 pm Post subject:

I think it is not a good move.
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Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

That's what happens when you have a left of center government milking the urban Indian dry so that hair-brained so-called anti-poverty schemes can be put into place in such dens of iniquity as UP and Bihar.

shivendrashukla · Posted: Mon Mar 05, 2007 9:47 pm Post subject:

Air fares, it seems, are north bound yet again Sad

Cheers
Shivendra

vivekman · Member Joined: 26 Dec 2006 Posts: 1897 Location: BOM

Great!

This is the last thing the LCCs needed in this age of Garib Raths (low cost all AC superfast trains) and reduction of rail fares across all classes!!!

Akshay · Member Joined: 19 Dec 2006 Posts: 315 Location: Mumbai

Hmm.. Will affect the LCCs. The effect might be passed on to the passengers too.

Veering a bit off topic here, as Vivek has mentioned garib raths, IMO Rs 667 is not a bad bet at all for Mumbai - Delhi at the speed of Rajdhani express
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COUGAR · Member Joined: 01 Jan 2007 Posts: 986 Location: Bangalore

Hold on to your chuddies people, espcecially with Left of center govt etc etc.

I know some people are extremely talented with word-play, but Know your facts first, especially you Jaysit.

The current proposal calls for RATIONALISING charges across airports to ensure equal load distribution. Right now most flights are landing and taking off in 2/3 time-slots and this is leading to congestion in the air. The current proposal offers lower fees for less busy slots and more expensive charges for the busiest slots so Airlines can pick and choose when they want to o-eprate.

This is expected to give LCC's in particular anincentive to shift atleast some of their flights to non-peak hours. Spiecejet already operates PNQ-AMD-DEL and vv at 03:05 am and by all accounts it is doing reasonably well!
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Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

COUGAR · Member Joined: 01 Jan 2007 Posts: 986 Location: Bangalore

Market pricing is all about availability and slots are more going to be more easily avaialble (thus cheaper) in off hours. The revenue lost in slack hours is made up in peak hour slot rentals. Its market dynamics at play here. Arent seats sold at dfferent fares for diffrent flights depending on timing etc? So why should it be different for airports? I think every airport must be seen as a corporate entity, govt owned or otherwise and it should start generating revenue.

Or are you suggesting that the Govt keep subsidizing private carriers using taxpayers money?
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VABBy · Member Joined: 19 Dec 2006 Posts: 823 Location: DEL

if some one thinks that by rationalization of airport landing charges has something of a Leftist angle then these people are thinking too much.

All the ministry of civil aviation seems to be following is a simple rule of transport economics which helps in spreading out the peak congestion.

The basic rational is very simple slots are the assets of the airport and being a scarced commodity the operater has full rights to charge a premium on it esp the ones in the peak hours.

People who need to travel during the peak hours due to business would continue to do so while most of the leisure travellers would often tend to shift their travel patterns to non peak hours in search of cheapers airfares...

Such a mechanism would also promote the red eye flights which i guess spicejet is trying to pioneer.

Bt i do believe there should be a variance in ops charges levied to full service carrier and a LCC
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stealthpilot · Member Joined: 19 Dec 2006 Posts: 2325 Location: BLR, DXB

Jaysit · Member Joined: 19 Dec 2006 Posts: 4346

VABBy · Member Joined: 19 Dec 2006 Posts: 823 Location: DEL

Cougar why this has been done only for these 3 airports is because there is a scarcity of the slots at these places. Remember dynamic pricing of slots does curbs congestions by spreading it bt it also discourages airlines from operating to that city to a certain extent.

For example if there was another airport near the vicinity of Delhi and such kind of dynamic pricing has been taken i am sure a couple of carriers would have shifted to the alternate airport..

Since we still want to provide good reliable and convinient connections across the country the same wont be done as of today for other airports.

Bt In future thats the right step foward..

Offcourse all airlines wont jst shift their all schedules to non peak hours in order to save costs bt then if their is a negative variance of 20-30% in terms of current traffic which is being handled the job is done.. A person who has to travel during peak hour wud have to travel and wont mind another 500 taken frm his pocket for the same. Its the leisure traveller the price conscious segment here about whom we are talking abt...

Nw where has the issue of subsidy come into picture is something i cant gobble.. Fine IC & AI are govt owned PSU,s who have been eating our money frm the taxes we pay to the Govt bt i am sure their are some more bigger devils in the Govt Kitty who are a much bigger liability than these two airlines.. I am sure being a Govt owned airline they hav got heaps of advantages ie a sweet loan deals for their fleet expansion.
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COUGAR · Member Joined: 01 Jan 2007 Posts: 986 Location: Bangalore

COUGAR · Member Joined: 01 Jan 2007 Posts: 986 Location: Bangalore

@Vabby:It has to start from someplace and the 3 places where congestion is the worst is a good place to start.

The 3 places in question see traffic that is 15% above their rated capacity during the peak hours. It is expected that this policy will help reduce some of the load.
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