Airlines asked to set up regulator

New Delhi: The aviation ministry asked the domestic carriers to set up an independent industry regulator, failing which the government may be forced to create some other mechanism and impose it on them. The ministry had earlier accepted airlines’ views on the issue that a regulator is needed for monopolies like airports and passengers are free to choose airlines they consider consumer-friendly. Following this, the Airports Economic Regulatory Authority (AERA) Bill did not cover airlines.
"This Bill is with the Parliamentary standing committee on transport, tourism and culture. There’s near unanimity among the members of this panel that airlines need to have a regulator..." said a source. Some MPs are learnt to have expressed concern over the omission of airlines from AERA Bill.
In a meeting, top ministry officials, headed by aviation secretary Ashok Chawla, told airline CEOs to formulate some regulatory mechanism.
On its part, a senior official of the Federation of Indian Airlines (a joint forum of several carriers) dismissed the need for a regulator. "Over time an airline develops a reputation among passengers for being good or bad. The competition means a flier can choose the airline he or she wishes to fly and falling numbers alone can force an erring player to improve," he said.
25/10/07 Saurabh Sinha/Times of India

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Categories: General Aviation Oct 2007