Price factors beyond airline’s control under aviation panel ambit

New Delhi: After having secured some transparency in air fares from airlines, the aviation ministry is now planning to expand the scope of a newly formed economic advisory council to take up matters that affect ticket pricing that are beyond a carrier’s control.
Earlier this month, the ministry formed the council with representatives from airlines, airports and consumer forums.
The forum will advise it on a policy framework to ensure affordable air services to remote and under-served areas, increase investment in the sector, liberalize international air services and ensure the viability of air transport in India.
The formation of the council was triggered by a steep escalation in air fares as demand outstripped seat availability in the peak season beginning November.
Airlines were persuaded to lower fares and put them up on their websites to ensure transparency.
“We have transparency in place; we will now have to increase the terms of reference of the committee to look at demand and supply and other issues. We will need more broad-based solutions,” said a civil aviation ministry official, who declined to be named.
28/12/10 Tarun Shukla/Live Mint

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Categories: Indian Aviation- In General Dec 2010