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Jet Airways warns snapping ties with online travel portals protesting 'opaque fare' scheme
26 Mar 2012

Jet Airways has issued a warning to leading Indian online travel 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, reports The Economic Times. On Saturday, March 24, 2012, there were media reports that a scheme in which travel portals such as MakeMyTrip.com, Yatra.com and GoIbibo were offering huge discounts on flights without revealing the name of the airline till payment was made.

The aim of this scheme, described variously as discount or special fares by the portals, is largely to get rid of debt-laden Kingfisher Airlines’ tickets. Some passengers, unaware that they were buying Kingfisher tickets, have subsequently been booked on flights that have later been cancelled.

Terming the scheme a scam, Nikos Kardassis, CEO, Jet Airways said that these practices were damaging the market and needed to be reined in. Jet Airways has complained against this practice to the Civil Aviation Ministry and the Directorate General of Civil Aviation (DGCA). "I have had some strong words with MakeMyTrip.com and have threatened them that we will pull out all inventories from their portal if they don't stop this scam. If the DGCA does not take any action on this, we will pull the plug on travel portals that participate in this scam," Kardassis said.

MakeMyTrip.com however said it has resolved the matter with Jet. "The issue stands resolved with 9W (Jet Airways). We will make corrections in how we display opaque fares to ensure no airline is hurt," said Keyur Joshi, Chief Operating Officer, MakeMyTrip.com.

Fares are going below the published limits that airlines submit to the DGCA, and we have conveyed to the travel portals that this practice has crossed the line when it comes to airline-agency relationships. Not only does the affect airlines, as it encourages sale of tickets below cost, but also the portal as it stands to lose passenger trust in the event of an unpleasant experience.

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