Exclusive Aviation Survey (Part 6)
Taxes and transparency – a consumer perspective.
Where Low Cost Carrier (LCC) and Full Service Carrier (FSC)
passengers in India are of a similar mind is in wanting airlines
to advertise full prices – that is, including taxes, charges,
and any applicable additional fees. Our survey revealed that
more than 90% of each group wanted this.
However, unless the government steps in, they are unlikely to get their wish, as the headline attractiveness of low prices is greatly diluted by adding taxes and charges (which are often greater than the ticket price itself).
Currently in Europe, consumer groups and offices of fair trading are leading the push towards industry-wide all inclusive transparent pricing, in order to counter the misleading aspect of low headline prices.
The European Commission has also declared its goal to make air ticket prices more transparent, and has recently submitted proposals designed to ensure that airlines become up-front about fares.
There is little doubt that in due course, India will also encounter these same consumer issues.
Next Week: Ancillary services – a largely untapped potential?