If Indians are developing a fear of flying, don't blame them. With airfares soaring, the boon of low-cost carriers seems a thing of the past. Starting this year, ticket fares have risen by as much as 30%-50%. Latest DGCA numbers show domestic air traffic fell sharply by 15.7% in October as well as declined in the period between January and October, compared to a year ago. With the pre-2008 aviation boom going bust, it`s natural that the government and industry players are seeking ways to get more people up in the air.
For starters, cartelisation on prices must be checked. But if carriers do gang up to overcharge passengers, the Competition Commission of India can look into it. The way to protect passenger interests isn`t to create a government watchdog to control or fix fares. Rather, aviation needs a regulator promoting competition, the best way to reduce prices. Let`s create a genuine level-playing field where state-owned Air India (AI) is denied favoured status. The privileged access AI`s had whether to taxpayer-funded bailouts or lucrative routes has demoralised private players.
23/11/12 Times of India
To Read the News in full at Source, Click the Headline
For starters, cartelisation on prices must be checked. But if carriers do gang up to overcharge passengers, the Competition Commission of India can look into it. The way to protect passenger interests isn`t to create a government watchdog to control or fix fares. Rather, aviation needs a regulator promoting competition, the best way to reduce prices. Let`s create a genuine level-playing field where state-owned Air India (AI) is denied favoured status. The privileged access AI`s had whether to taxpayer-funded bailouts or lucrative routes has demoralised private players.
23/11/12 Times of India
