Civil Aviation Minister Ashok Gajapathi Raju said, to deal with steep rise in airfares, capping would not be the answer as it would also push the floor prices at an The Associated Chambers of Commerce and Industry of India (ASSOCHAM) event.
On capping airfares, "We did analysis which showed that 1.7% of the tickets sold were of high cost. So, the last minute high price of ticket is matter of concern. But we should not land up in a situation that pushes price of over 90% of passengers for benefit of 1.7%, said Mr Ashok Gajapathi Raju Pusapati, Union Minister, Ministry of Civil Aviation.
Mr Rajiv Nayan Choubey, Secretary, Ministry of Civil Aviation said, the civil aviation policy is just the beginning. We wish to stay ahead of the growth curve and if we fall behind the growth curve, for example as it happened in case of urban development in the country, there will be aviation chaos in skies, airports....All that we must do in order to ensure that we stay ahead of the growth curve.
There are couples of areas which require immediate attention like how to reduce the cost of leasing? If the cost leasing remains high either because of capital or any other procedural requirement, the regional connectivity may find difficulty in taking off so we are committed to exploring ways to reduce the cost of leasing, added Mr. Choubey.
Mr. Choubey further said if the crude price remains soft for the next 4-5 years, regional air connectivity would have found very strong roots in India.
24/06/16 Capital Market/Business Standard
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On capping airfares, "We did analysis which showed that 1.7% of the tickets sold were of high cost. So, the last minute high price of ticket is matter of concern. But we should not land up in a situation that pushes price of over 90% of passengers for benefit of 1.7%, said Mr Ashok Gajapathi Raju Pusapati, Union Minister, Ministry of Civil Aviation.
Mr Rajiv Nayan Choubey, Secretary, Ministry of Civil Aviation said, the civil aviation policy is just the beginning. We wish to stay ahead of the growth curve and if we fall behind the growth curve, for example as it happened in case of urban development in the country, there will be aviation chaos in skies, airports....All that we must do in order to ensure that we stay ahead of the growth curve.
There are couples of areas which require immediate attention like how to reduce the cost of leasing? If the cost leasing remains high either because of capital or any other procedural requirement, the regional connectivity may find difficulty in taking off so we are committed to exploring ways to reduce the cost of leasing, added Mr. Choubey.
Mr. Choubey further said if the crude price remains soft for the next 4-5 years, regional air connectivity would have found very strong roots in India.
24/06/16 Capital Market/Business Standard
