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Government not to regulate airfares

05 Dec 2012 Evaluate

Giving a sigh of relief to the aviation sector, civil aviation minister Ajit Singh has said that the government has no plans to regulate airfares; government just intends to make the pricing mechanism more transparent.

The minister said that "What we are trying to do is make the system for deciding the fares transparent. Public should know what is the bucket system and the range they have been given should be reasonable."

Civil aviation minister after meeting with Petroleum and Natural Gas Minister M Veerappa Moily, said on the issue of pricing of jet fuel by state oil marketing firms, that he has urged the petroleum minister to bring in more transparency in fixing aviation turbine fuel (ATF) rates. Singh expressed that airfares are high mainly because of soaring ATF and airport charges. 

Further, Singh said that he has sought Moily's intervention in allowing airlines to use airport infrastructure of state oil companies for importing ATF and has asked to direct oil firms to offer discounts on fuel purchases to state-run Air India.

 

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