New Delhi: Cash-strapped Indian carriers have sought a regulatory mechanism to prevent predatory pricing of air tickets and asked the government to rationalise taxes on jet fuel and other levies.
Maintaining that the cost levels of the Indian airlines were "probably the highest in the world", the Federation of Indian Airlines (FIA) said the price of aviation fuel for domestic use was 50 percent higher in India than global levels.
Besides, airport charges at privatised airports "continue to rise unabated", the interest costs were "highest in the world" and airspace congestion was forcing airlines to lose millions, it said.
In a letter to Civil Aviation Secretary Nasim Zaidi, the FIA, which represents all major Indian carriers including Air India, also referred to predatory pricing or the practice of selling a product or service at very low price to drive competitors out of the market or create barriers for the new entrants.
"It is critical to establish appropriate regulatory mechanism that would prevent malpractices like predatory pricing and capacity dumping in the market which could be detrimental to the interests of the industry as a whole," FIA Secretary General Anil Baijal said in the letter.
20/10/11 ZeeNews
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