Capping of air fares could raise prices: Government | newkerala news

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New Delhi, Jan 6: 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.

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