Airlines pulled up for charging abnormally high and low fares

New Delhi: In the first action of its kind, the aviation ministry has cracked the whip on both Indian and foreign carriers for charging fares on both extremely low and high side.
The Directorate General of Civil Aviation (DGCA) on Friday issued notices to two biggest private Indian airlines and a Malaysian low-cost carrier towards this end. The desi airlines have been asked to explain why they are charging exorbitant high fares on the sectors like Delhi-Dehradun or Bangalore-Hubli where they enjoy a monopoly scenario.
The foreign LCC has been asked to explain how it is offering an extremely low predatory return fare of Rs 3,000 (all inclusive) from south India to Malaysia.
"Airlines can't be allowed to unreasonably alter fares to enjoy benefits of a monopoly on certain routes at the cost of the traveller. Similarly, they can't be allowed to offer ridiculously low fares, drive competition out of the business and eventually become a monopoly in future to exploit the situation. I have asked the DGCA to ensure a system to strike a right balance of fares," aviation minister Praful Patel told TOI, soon after the DGCA notices were issued.
DGCA chief Nasim Zaidi has set up an analysis unit manned by tariff experts who monitor fares of both foreign and Indian airlines on a real-time basis. A monthly report is prepared which indicates excessive or predatory fares (that don't even cover costs) being offered by airlines.
13/03/10 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Mar 2010