Mumbai: The Directorate General of Civil Aviation (DGCA) clampdown on low-cost airline Spice Jet's discount fare scheme has raised questions over the role aviation regulator has played in the recent times when it comes to monitoring airfares.
"Is it justified for the DGCA to try and control commercial activities of an airline? What was the DGCA doing when airfares were sky-high?" asked Sudhakara Reddy, chairman, Air Passengers Association of India (APAI), a consumer rights body. "Passengers have paid fares as high as Rs 27,000 to buy a ticket on the Mumbai-Chennai route. Fares have been very high on the Mumbai-Delhi route for a while now. Why does the regulator stay silent at such times?" he added.
An aviation analyst said the DGCA had no jurisdiction over such issues. "If it's a question of predatory pricing, it should be left to the Competition Commission of India to haul up the airline and it is not the DGCA's job," he said. "Moreover, rule 135 of Indian Aircraft Rules, 1937, which the DGCA quoted to clamp down on Spice, states that airlines should display the consolidated fare and the complete break-up of the fare on the ticket.
03/04/14 Times of India
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"Is it justified for the DGCA to try and control commercial activities of an airline? What was the DGCA doing when airfares were sky-high?" asked Sudhakara Reddy, chairman, Air Passengers Association of India (APAI), a consumer rights body. "Passengers have paid fares as high as Rs 27,000 to buy a ticket on the Mumbai-Chennai route. Fares have been very high on the Mumbai-Delhi route for a while now. Why does the regulator stay silent at such times?" he added.
An aviation analyst said the DGCA had no jurisdiction over such issues. "If it's a question of predatory pricing, it should be left to the Competition Commission of India to haul up the airline and it is not the DGCA's job," he said. "Moreover, rule 135 of Indian Aircraft Rules, 1937, which the DGCA quoted to clamp down on Spice, states that airlines should display the consolidated fare and the complete break-up of the fare on the ticket.
03/04/14 Times of India
