As per a PTI report, there is no proposal before the government to regulate economy class air fares for domestic routes and carriers are free to fix ticket prices, Mahesh Sharma, Minister of State for Civil Aviation, has said.
His remarks came against the backdrop of concerns expressed in various quarters about steep fluctuations in air ticket prices. Earlier this week, a parliamentary panel also suggested capping maximum air fares on domestic routes. In a written reply to the Lok Sabha, the Minister said air fares are not controlled by the government. To a query on whether the government proposes to regulate the economy class air fare for domestic routes, Sharma replied in the negative.
According to him, airlines are free to fix the ticket rates after taking into consideration various factors, including cost of operation and characteristics of service. A Tariff Monitoring Unit has been set up at the Directorate General of Civil Aviation (DGCA) to monitor air fares on certain routes on a random basis. This is to ensure airlines do not charge fares outside the range declared by them.
04/12/15 Travel Biz Monitor
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His remarks came against the backdrop of concerns expressed in various quarters about steep fluctuations in air ticket prices. Earlier this week, a parliamentary panel also suggested capping maximum air fares on domestic routes. In a written reply to the Lok Sabha, the Minister said air fares are not controlled by the government. To a query on whether the government proposes to regulate the economy class air fare for domestic routes, Sharma replied in the negative.
According to him, airlines are free to fix the ticket rates after taking into consideration various factors, including cost of operation and characteristics of service. A Tariff Monitoring Unit has been set up at the Directorate General of Civil Aviation (DGCA) to monitor air fares on certain routes on a random basis. This is to ensure airlines do not charge fares outside the range declared by them.
04/12/15 Travel Biz Monitor
