Law to take tough stand on airline cartelisation

New Delhi: The civil aviation ministry is considering a proposal to include in the civil aviation requirements (CAR), penalties for airlines indulging in cartelisation of fares. The ministry is formulating a new draft for the proposed Civil Aviation Authority (CAA), which is set to replace the Directorate General of Civil Aviation (DGCA), while the CAA Act will replace the current Aircrafts Act of 1934.
“We would consider a proposal on introducing penalties or punishments in the CAA for airlines involved in cartelisation of fares in the next meeting of the committee,” said a senior ministry official on the condition of anonymity.
After Diwali in November 2010, airlines resorted to raising spot fares by up to 300 per cent on various routes. The Competition Commission of India is also investigating the matter.
The committee drafting the CAR, which is set to be formulated in 24 months, includes members from all sections across the sector, including representatives from the International Air Transport Association (IATA), the Centre for Asia Pacific Aviation and representatives from airlines and airports.
23/02/11 Mihir Mishra/Business Standard

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Categories: Indian Aviation- In General Feb 2011