How Low Can They Go? Fifteen Percent... That's It

A top official with Qatar's Civil Aviation Authority says the organization will likely opt to maintain a 15 percent cap on the differential in airfares between mainline carriers and low-cost operators in the local market.

"If LCCs are allowed to offer fares that are much low than [full service carriers], conventional carriers might be forced out of operating on a particular route from Doha, affecting passengers who wish to pay more but avail of better services," said Saleh Haroon, Director, Air Transport and Airport Affairs (CAA). "Hence, we have to regulate the fare difference that LCCs will be allowed to offer in the local travel market."

The ceiling is essential, Haroon added, to maintain a level playing field and insure that airlines take in enough revenue to cover their operational expenses.

The CAA actually has three tiers for airfares sold from Doha International Airport -- Direct, Indirect, and LCCs. Indirect carriers are allowed to offer fares eight percent lower than those offered by airlines flying direct from the city to a particular destination, while low-cost carriers are allowed to offer discounts of up to 15 percent of the direct fares.

"Hence, LCCs cannot dictate what should be our definition of a budget carrier," Haroon said. "Though such carriers cut costs on in-flight meals, operate newer, fuel efficient aircraft and offer lower free baggage allowance, they still have other expenses on crew and navigation."

Low-cost carriers flying from Doha are allowed to offer the lower fare throughout the year, he added, regardless of peak travel times.

FMI: http://english.mofa.gov.qa/details.cfm?id=107, www.qatar-info.com