New Delhi: The aviation ministry is planning to regulate fares by fixing Rs 20,000 as the highest economy class fare to be charged on domestic routes. This follows instances of some airlines charging exorbitant rates during the ongoing Spicejet crisis.
Even spot fares (tickets purchased at the last minute which always go for the highest price) are not supposed to go beyond the limit the ministry plans to set.
"The SpiceJet crisis happened, among other things, due to the extremely low fares it charged this year. We have to stop predatory pricing to prevent other airlines from meeting the fate of a Kingfisher or SpiceJet. We are going to set minimum and maximum fare for airlineS," said a senior official.
On December 18, TOI had first reported about the move to put in place a floor and a cap on air fares.
Till now, fares have not been regulated by the ministry. Airlines give a range of minimum and maximum fares to the directorate general of civil aviation (DGCA) every month for each route.
24/12/14 PTI/Times of India
To Read the News in full at Source, Click the Headline
Even spot fares (tickets purchased at the last minute which always go for the highest price) are not supposed to go beyond the limit the ministry plans to set.
"The SpiceJet crisis happened, among other things, due to the extremely low fares it charged this year. We have to stop predatory pricing to prevent other airlines from meeting the fate of a Kingfisher or SpiceJet. We are going to set minimum and maximum fare for airlineS," said a senior official.
On December 18, TOI had first reported about the move to put in place a floor and a cap on air fares.
Till now, fares have not been regulated by the ministry. Airlines give a range of minimum and maximum fares to the directorate general of civil aviation (DGCA) every month for each route.
24/12/14 PTI/Times of India
