Government rejects Parliamentary panel suggestion to cap airfares | India Today

The report clearly placed the onus on the Ministry of Civil Aviation to fix things. It read, “The Ministry of Civil Aviation, though aware of the rampant exploitation, is not showing any proactive role in regulating airfares. The Committee therefore recommends the Ministry of Civil Aviation to consider fixing an upper limit of fares for air tickets for every sector.”

The Ministry has outrightly rejected the suggestion. It said that Indian airlines follow globally accepted dynamic pricing practices, which entail fixing airfares on the basis of several factors, including cost of operation, characteristics of services, reasonable profit and the generally prevailing tariff.

Airlines are expected to display their prices on their websites and any aberration can be brought to the notice of the industry regulator, the Directorate General of Civil Aviation (DGCA).

“Please note that only 1 per cent and 2 per cent of tickets are transacted at the highest fare basket. A capping of fares could raise prices for 98-99 per cent of passengers,” the government clarified in a press statement.

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Government rejects Parliamentary panel suggestion to cap airfares : India, News – India Today.