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MakeMyTrip loses IndiGo inventory owing to opaque fare scheme; Jet reduces ticket sales

Airline service IndiGo has withdrawn all content from online travel agency MakeMyTrip alleging it continued to offer arbitrary and opaque fares despite objection by the Directorate General of Civil Aviation (DGCA). Offering opaque fares is a trade practice where a portal sells heavily discounted.

Airline service IndiGo has withdrawn all content from online travel agency MakeMyTrip alleging it ontinued to offer arbitrary and opaque fares despite objection by the Directorate General of Civil Aviation (DGCA). Offering opaque fares is a trade practice where a portal sells heavily discounted tickets but does not disclose the name of the airline until the payment is made by the customer.

Meanwhile Jet Airways has drastically reduced its inventory on the site and capped the ticket sale to five seats a day on MakeMyTrip. In March 2012, Jet Airways had issued a warning to portals like MakeMyTrip, Yatra etc that it could snap ties with them unless they agree to drop the controversial ‘opaque fare’ scheme in which a customer gets to know the name of the carrier only after booking a ticket, Soon after the airlines took this step, the portal removed all bargain fares from its site. MakeMyTrip claims the opaque fares were withdrawn on March 28, the day DGCA asked airlines to stop publishing opaque fares and users could see all flight details before making the payment. The opaque fare issue had flared recently, following Kingfisher Airlines’ flight cancellations. Travel portals had put up a note saying the carrier was not part of the bargain fares.

Aditya Ghosh, President, IndiGo, said, “The arbitrary display of fares and opaque pricing is anti-consumer and in violation of DGCA norms and directives. We have raised this with MakeMyTrip on several occasions but, unfortunately, there has been no resolution. We were therefore left with no choice. IndiGo can’t be seen supporting a blatant violation of the law.”

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