The government on Saturday said that capping of air fares could "raise prices for the 98-99 per cent of the passengers".
The Ministry of Civil Aviation, in a statement, defended the domestic airline industry against the observations made by the Parliamentary Standing Committee on Transport which pointed to airline staff's misbehaviour and over-pricing of air tickets.
"Pricing deregulation has allowed competition to bring down prices dramatically in India, making it one of the lowest-fare markets in the world. Indian airlines follow globally accepted dynamic pricing practices.
"... only between 1 per cent and 2 per cent of tickets are transacted at the highest fare basket. A capping of fares could raise prices for the 98-99 per cent of the passengers," the ministry statement said.
"The government is cognisant of emergencies or natural calamities, which cause a sudden surge in aviation demand. In such cases, the Ministry works with airlines to create more supply by re-routing aircraft to the affected areas and ensuring stable prices," it added.
The central government had dispensed with its right to approve tariff post the repeal of Air Corporation Act in March 1994.
According to the ministry, it has partnered with all key stakeholders to establish the innovative AirSewa platform and other modes of offering assistance to passengers.
"It is heartening to note that of the around 12 crore passengers that have flown domestically in calendar year 2017, we have received less than 10,000 complaints overall," the statement said.
"The Ministry also proposes to issue an explicit and easy-to- understand Air Passenger Bill of Rights. We will be undertaking extensive public consultations to finalise the same."
08/01/18 SME Times
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The Ministry of Civil Aviation, in a statement, defended the domestic airline industry against the observations made by the Parliamentary Standing Committee on Transport which pointed to airline staff's misbehaviour and over-pricing of air tickets.
"Pricing deregulation has allowed competition to bring down prices dramatically in India, making it one of the lowest-fare markets in the world. Indian airlines follow globally accepted dynamic pricing practices.
"... only between 1 per cent and 2 per cent of tickets are transacted at the highest fare basket. A capping of fares could raise prices for the 98-99 per cent of the passengers," the ministry statement said.
"The government is cognisant of emergencies or natural calamities, which cause a sudden surge in aviation demand. In such cases, the Ministry works with airlines to create more supply by re-routing aircraft to the affected areas and ensuring stable prices," it added.
The central government had dispensed with its right to approve tariff post the repeal of Air Corporation Act in March 1994.
According to the ministry, it has partnered with all key stakeholders to establish the innovative AirSewa platform and other modes of offering assistance to passengers.
"It is heartening to note that of the around 12 crore passengers that have flown domestically in calendar year 2017, we have received less than 10,000 complaints overall," the statement said.
"The Ministry also proposes to issue an explicit and easy-to- understand Air Passenger Bill of Rights. We will be undertaking extensive public consultations to finalise the same."
08/01/18 SME Times
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