With civil aviation minister Praful Patel asking airlines to avoid any kind of predatory pricing, the Directorate General of Civil Aviation (DGCA) has set up a tariff analysis unit to monitor route-wise fares across networks, on a regular basis. The minister had earlier warned airlines against sudden hike in air fares and had said the government would discuss ways to keep fares under check as air traffic in the country has been steadily rising in the recent months.
Patel, on Tuesday informed the Rajya Sabha that in view of the recent reports of excessive tariff being charged by airlines on different routes, the DGCA has issued directives to furnish established tariff route-wise and fare category-wise on a monthly basis. Airlines should also notify changes in air fares to the DGCA within 24 hours of affecting such a change.
?The intention behind the directive is to keep passengers informed of the pricing pattern of airlines. A tariff analysis unit has been set up in the DGCA to monitor tariff on regular basis, ? he said.
Recently, while taking a serious note of ?exorbitant fares? being charged by airlines, Patel had said that fares on the lower and higher price band on every sector will have to be notified. It has to be in the public domain on each airline?s website on what would be the fares on higher price band. Meanwhile, the DGCA has already sent notices to airlines seeking explanation on the issue. The regulatory body will discuss with airlines ways to regulate fares in low and high bands.
Defending the hike in fares, the airline industry has re-iterated that the current prices are completely market driven. ?If one books in advance, he does not have to pay a premium for a seat. Also, airlines need to drive business profitably forward. Fare pricing is also done taking into account other factors like the existing cost culture within the organisation, says an airline official. Air fares on the Mumbai-Delhi sector is currently at Rs 15,000 on the higher end and in business class, it could be over Rs 25,000.
