High fares smack of a cartel: Praful

New Delhi: The stage is set for the first ever showdown between "greedy" airlines and the government over the issue of fleecing passengers by charging exorbitant fares. The aviation ministry has refused to accept the astronomically high maximum fares submitted by airlines on Wednesday in the price ranges given for domestic flights of different distances.
Aviation minister Praful Patel told TOI that the matter could be referred to the Competition Commission of India (CCI) if airlines don't charge reasonable fares. "We cannot allow airlines to team up to offer exorbitant fares and will refer the case to CCI, if need be. We are certainly not happy with the fare ranges given by airlines and don't agree with them. The Directorate General of Civil Aviation (DGCA) has powers to act against predatory pricing and will take strictest possible action against the erring airlines," he said. Patel said national carrier Air India will take the lead in offering transparent fares.
The fares submitted by airlines were highlighted in these columns on Thursday. A low cost airline gave Rs 40,000 as the highest one-way fare for over 1,400-km flight that includes Delhi-Chennai/Bangalore. Another full service airline capped maximum fare at Rs 35,000 for a one-way journey on such flights.
03/12/10 Saurabh Sinha/Times of India

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Categories: Indian Aviation- In General Dec 2010