The Civil Aviation Authority (CAA) has decided to put a ceiling on low cost carrier discounts, reports a daily in Qatar.

Mar 20, 2006

The Civil Aviation Authority (CAA) has decided to put a ceiling on low cost carrier discounts, reports a daily in Qatar.

Published: 20 Mar 2006

The Civil Aviation Authority (CAA) has decided to put a ceiling on low cost carrier discounts, reports a daily in Qatar.

According to a report from Doha, the Civil Aviation Authority will maintain a cap of 15 percent on the differential in airfares that can be offered by LCCs over conventional airlines, in the local carrier market, a top CAA official asserted. Such a ceiling on the discount LCCs can offer passengers, he added, was essential to ensure that all airlines operating to Doha yields that justify operational expenses.

The CAA has structured airfares sold in Doha under three categories- Direct, Indirect and LCCs. Indirect carriers can offer fares that are eight percent lower than those offered by airlines flying direct between Doha and any particular destination. LCCs will be allowed to sell tickets up to 15 percent cheaper over fares offered by direct carriers, the report added.

According to The Peninsula, Saleh Haroon, director, Air Transport and Airport Affairs (CAA) explained, Qatar could accommodate both, LCCs to serve the economically weaker segments of the society and Full Service Carriers (FSCs), that are preferred by the high-end leisure and business traveller.