wordpress blog stats
Connect with us

Hi, what are you looking for?

Opaque Fares Controversy: MakeMyTrip Gets Indigo & Jet Airways Back

The impasse between MakeMyTrip.com and two airlines – Jet Airways and IndiGo – has been broken, with tickets from the two airlines now being made available again on the Online Travel Agent (OTA). A little over two weeks ago, Indigo and Jet Airways has pulled their inventory from MakeMyTrip over its opaque fare scheme; Indigo had pulled its entire inventory, while Jet Airways had limited ticket sales on MakeMyTrip to five tickets a day.

Following the announcement of the pullout, MakeMyTrip shares had fallen down as much as 19 percent, according to Fool.com. The share price did recover thereafter, but there hasn’t been a substantive impact of yesterdays announcement.

The Opaque Fares Controversy

Opaque fares involved travel portals selling customers highly discounted fares to online customers without disclosing the identity of the airline until the booking was done, essentially allowing airlines to offload unsold inventory. On March 28, DGCA directed all travel portals to withdraw this scheme, stating that the scheme violated the provisions of the 1937 Aircraft Rules and other circulars relating to transparency in display of air fares. Following this, MakeMyTrip reportedly dropped Kingfisher Airlines from this scheme and had claimed to have withdrawn the opaque fares scheme, but Indigo and Jet Airways claimed that MakeMyTrip had continued to sell opaque fares, at the time of pulling out.

What’s Wrong With Opaque Fares?

Advertisement. Scroll to continue reading.

Frankly, I don’t see what’s wrong with having opaque fares – if there’s a customer who wants to pay the lowest possible price for inventory, and there’s an airline that is looking to offload its unsold inventory, why not allow them to do so? The issue, I guess, is with the opacity – that the name of the airline is not disclosed. A few months ago, when flights of Kingfisher Airlines were repeatedly being cancelled, customers were choosing other airlines, and it can be argued that if customers knew then which airline they were buying tickets for under the opaque fares scheme, they might not have bought the tickets.

Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

While the market reality of popular crypto-assets like Bitcoin may undergo little change, the same can't be said for stablecoins.

News

Bringing transactions related to crypto-assets within the tax net could make matters less fuzzy.

News

Loopholes in FEMA and the decentralised nature of crypto-assets point to a need for effective regulations.

News

The need of the hour is for lawmakers to understand the systems that are amplifying harmful content.

News

For drone delivery to become a reality, a permissive regulatory regime is a prerequisite.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ