Thursday, March 24, 2016

Put an Upper Cap on Air Fares: Government

New Delhi: Faced with a barrage of criticism, the government has suggested the airlines to put an upper cap on air fares. Recently, airlines had hiked their fares exponentially to make a kill especially after the Chennai rains and Jat agitation in Haryana.

The Civil Aviation Ministry’s lack of response to fleecing by airlines drew flak, far and wide.

In an interaction with Express, Minister of State for Civil Aviation Mahesh Sharma said, “If we put a cap, we will find ourselves different from the rest of the world. What we have, however, suggested the airlines is to put an upper cap on the pricing,” he said.
Sharma said that the government is averse to price regulation but India cannot put a regulatory mechanism in place, as it is bound by the International Civil Aviation Organisaton (ICAO) regulations.
Though only one to two per cent tickets are sold in the higher price bracket, Sharma said they bring bad names to the industry.
24/03/16 Samiran Sarangi/Indian Express
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