Airlines told to cut fares, review security systems

New Delhi: The civil aviation ministry has asked domestic airlines to pass on the benefit of falling jet fuel prices to passengers by reducing fares.
The ministry has also instructed them to review their security systems and verify the background of their employees in light of the recent terror attacks in Mumbai. “We took stock of the entire aviation sector in the meeting. Various issues right from aviation turbine fuel (ATF), to security and airlines’ preparedness to land in airports during the foggy weather condition were discussed,” civil aviation secretary M Madhavan Nambiar told ET.
Mr Nambiar said that airlines’ can’t be forced to slash air fares. “It’s a commercial decision of air carriers.” The meeting was attended by CEOs of various airlines and officials of the Bureau of Civil Aviation Security (BCAS) and the Directorate General of Civil Aviation (DGCA).
An official present in the meeting, who wished not to be named, said that airlines had been categorically asked to reduce airfares to attract more passengers. “All of us should work together to put passengers on the aircraft. Fares have to be competitive to fill up seats,” he said, quoting a top civil aviation ministry official. According to estimates, there is still about 20% excess capacity in the market that may put pressure on airline operators to slash fares.
16/12/08 Nirbhay Kumar/Economic Times

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Categories: Indian Aviation- In General Dec 2008, Safety Dec 2008