Airlines pledge not to undercut fares

Airlines operating on the much-sought-after Indian sector have pledged in the rare presence of a government official not to resort to undercutting, to ensure that the agreement, unlike in the past, holds.
Abdullah bin Nasser Al Maskari, a senior official of the Directorate General of Civil Aviation, was present at the meeting of airline representatives on Tuesday.
The signed agreement, made available to Gulf News yesterday, says that "all incentives, corporate deals and ad hoc fares stand withdrawn from November 1, 2000".
No back-dating of tickets will be allowed under any circumstances, says the agreement, adding that the baggage allowance would not exceed 30 kilos, with the exception of Pakistan International Airlines (PIA), which can carry 40 kilos per passenger. The service charge of 5 riyals (one way) and 10 riyals (return) will be collected without exception.
A joint circular issued to travel agencies, believed to be around 50, says that a child will be charged 67 per cent of the applicable market fare, and an infant 10 per cent of the published fare. The agency commission will be seven per cent.
Representatives of Oman Air, Gulf Air, Air India and Indian Airlines, the direct carriers to the Indian sector, deliberated for about five hours on Tuesday along with indirect carriers PIA, Emirates and Air Lanka, under the umbrella of the Yields Improvement Committee (YIC).
This was the first time that a government official had attended a YIC meeting, which took place in the wake of cut-throat discount competition, not known to Oman's air travel industry before. Some airlines were charging even less than 100 riyals for a return ticket to Mumbai and New Delhi as against RO160 which has been fixed by the YIC now.
In the case of Oman Air and Gulf Air, it will be 170 riyals. PIA and Emirates will charge 135 riyals.
The return fare for Chennai (Madras) and Thiruvananthapuram will be 240 riyals by Gulf Air and Oman Air and 225 riyals by Air India and Indian Airlines.
New fares have also been announced for Kochi, Bangalore and Hyderabad, the other Indian destinations from Muscat.
"The price war was ruining our industry," said a seasoned travel operator, hoping that all the parties concerned will adhere strictly to the new agreement in the larger collective interest.