Airlines Deals

Concerned over the steep hike in airfares, Overseas Indian Affairs Minister Vayalar Ravi has asked Civil Aviation Minister Praful Patel to spare the Gulf sector from the hikes as most travellers from the region are semi-skilled and unskilled workers.

Ravi met Patel yesterday and asked him to call a meeting of airlines to discuss the issue. He also pointed out that the 30 per cent rise in airfares for the peak summer season on the Gulf-India sector affected low-income workers in the region who travelled to India to visit their families.

“This may be distinguished from the pleasure trips undertaken by tourists in the European sector,” Ravi wrote in a letter to Patel.

During his visit to the Gulf countries last month, one of the major issues brought up by Gulf Indians was the exorbitant rise in airfares of different airlines, Ravi said.

He added that Indians, especially workers in the Gulf, remit $12.5bn annually as foreign exchange.

“Whereas incentives to them in return is nothing,” the letter stated.

“As you know at the same time the exporters in SEZ (Special Economic Zones) are given substantial incentives by the government for boosting foreign exchange earnings.

“The Gulf countries account for five million overseas Indian workers with a gross flow of half a million workers annually, excluding returnees. The travel of these workers is a substantial air travel market which is significantly monopolised by Air India,” the minister said.

Sources in the Overseas Indian Affairs Ministry said the minister had also taken up the issue with Air India Chairman V Thulasidas.

“Thulasidas is believed to have said Air India could not take such a step alone. That’s the reason the minister wanted to convene a meeting of other airlines too,” an official told said.

NRIs in the Gulf are of the view that if the country’s national carrier took a decision to reduce the fares, others would be forced to follow suit.

Air India increased its fare twice for the peak season from April to mid-July. After the hike in April, a Dubai-Mumbai return trip on an economy class ticket cost 1,050 dirhams. From June 14 to July 7, this was increased by 30 per cent, taking it to 1,800 dirhams.

Air India’s budget airline — Air India Express — also increased its fares during the peak summer season.

The charges have hit non-resident Keralites the most. According to air travellers from Dubai to the Kerala capital Thiruvananthapuram, an Air India economy class ticket costs 3,500 dirhams in Emirates Airlines and 2,800 dirhams in Air India during the season.