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Government not considering mechanism for capping airfares: Mahesh Sharma

22 Jul 2015 Evaluate

Minister of State for Civil Aviation, Dr. Mahesh Sharma replying to a question in the Rajya Sabha has said that the Government is not considering the formulation of a mechanism for the capping of economy and business class airfares, to curb the predatory pricing of passenger tickets by airlines.

The minister further added that air fares are not regulated by the Government. Airlines are free to fix tariff under the provision of Sub-rule (1) of Rule 135, Aircraft Rules 1937 having regard to relevant factors, including the cost of operation, characteristic of services, reasonable profit and the generally prevailing tariff.

Earlier, the Ministry of Civil Aviation had asked the DGCA to conduct a detailed study of airfares charged by domestic airlines on high-density routes during the past five years. For quite some time there have been calls from various quarters including from Members of Parliament, for some mechanism to control skyrocketing domestic airfares, especially for those who have to finalise their travel plans at short notice.

Meanwhile, the government is completely rewriting the civil aviation policy and the Civil Aviation Ministry will soon put the revised draft to invite comments from public and other stakeholders.

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