Indian families in the UAE are being priced out of trips back home as a summer surge in demand and the shutdown of a major airline cause fares to soar.
Travellers are being forced to fork out up to three times the typical cost for flights to many parts of the country, with travel agents admitting the price hike has prompted some customers to cancel their plans.
A combination of a reduction in numbers flights and high demand during the summer months - when many Indian expatriates fly home as the school term ends - is being cited as the reason for the inflated fees.
Jet Airways, India's second-largest carrier, which operated flights to 60 cities, suspended flights in April due to a Dh4.4 billion funding shortfall.
Premjit Bangara, general manager at leading UAE travel agent Sharaf Travel, believed rising air fares could be explained by the "summer rush and the major demand in sectors like India and Egypt”.
Fares to cities like Trivandrum, Kochi, and Kannur rose by almost 30 per cent as did prices for Mumbai, Bangalore, and Chennai this month.
“India has been hit primarily because of the summer rush with children and parents going home. The sector is saturated with holiday traffic,” said Mr Bangara.
“Other carriers have benefited from the closure of Jet although it happened a while back. Fares that were Dh1,200 to Dh1,500 are now Dh3,000 to Dh3,200," he said.
An Indian travel agent in Mussafah in Abu Dhabi said some families are paying close to Dh3,500 per person to travel to India.
“Since Jet Airways, the second-largest Indian carrier who were covering several routes shut down, passengers have been directed to other airlines and there is a shortage of seats.
“The airfare is very high right now because of school holidays."
People traveling from Abu Dhabi to Coonoor, Calicut or Trivandrum in India are paying Dh1,700 for a one-way ticket whereas they could a return ticket for Dh1,200 during the off-peak season.
Industry experts said a family of four would have to pay close to Dh14,000 to travel to Kerala this week and return on September 1. In the off-peak season, the family could make the trip for Dh4,800.
Travel agents said some families have cancelled plans to travel home because of the expense while others are leaving later and coming back early before schools reopen.
Jomy Anthony, an Indian expatriate in Dubai, paid Dh2,408 for a Dubai-Kochi round trip for his wife, who flew earlier this week.
“Air ticket prices are too high this year and I thought I overspent until I heard from friends who had paid even more to travel to India," said Mr Anthony.
"This is just unfair to passengers because we have no choice but to go back home," he said, adding that his friend had paid Dh3,309 for the same route this month.
Komal Prasad, an Indian housewife preparing to travel to Bangalore in southern India soon, paid Dh2,825 for her ticket and Dh3,105 for her husband.
“Air tickets are usually much lower and these high prices hurt families," said Ms Prasad.
“People need to go for the holidays and have to pay up. We booked four to five days before traveling but others who made bookings weeks before also have paid high prices," she said.
In June, The National reported that airlines in India were using the opportunity to add flights and increase fares after Jet Airways flights were grounded.
S Shah, an Indian expatriate in Dubai, spent close to Dh6,000 for tickets to Mumbai in May and July.
“The prices of tickets to India have definitely gone up by 15 per cent in the off-peak season and 25-30 per cent during peak seasons," said Mr Shah.
He said that the high air fare affected his budget but advised families to plan ahead in order to get the best deals.
“Families travelling with children are getting affected by the airfare but others can plan their leaves in the off season.
“Those who can only travel during the summer break have paid at least 20 per cent premium if they did not plan their holidays a few months in advance."
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
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Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
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Transmission: Eight-speed auto
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Price: From Dh330,000 (estimate)
AIR
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