Govt may move CCI to check rise in airfares

Domestic airlines have proposed a massive increase in air fares, ignoring the government’s calls not to resort to exorbitant fares after they were hauled up for abrupt rise in ticket costs even during non-peak seasons.

The airlines, however, may not have their way with the new fare structure they have proposed, since the Directorate General of Civil Aviation (DGCA) is unlikely to give its approval. The regulator received the proposals yesterday.

A senior civil aviation ministry official said the ministry was considering to move the Competition Commission of India (CCI) if the airlines refused to stop the abrupt rise in ticket costs.

DGCA sources said today the regulator was likely to shoot down the proposed price bands and might ask airlines to rework them keeping the interests of passengers in mind.

“The responses (of airlines) are under examination,” Civil Aviation Secretary S N A Zaidi said. The fare bands proposed by airlines are for the first time based on distance-based slabs.

According to the proposals, an air passenger travelling economy class may have to shell out Rs 10,500 for a Delhi-Chandigarh or Chennai-Coimbatore flight and up to Rs 40,000 on the Delhi-Bangalore or Delhi-Kolkata route.

The domestic airlines came out with the proposal after they were asked by DGCA to submit the planned price bands on various sectors after some of them resorted to steep increase in fares, even during the non-peak season.

Civil Aviation Minister Praful Patel reiterated that airlines would not be allowed to charge exorbitantly.

“DGCA will not allow any predatory or exorbitant pricing... If there is something lacking, we will make necessary correction. We will not allow airlines to charge exorbitantly. We will not let them take advantage of a situation,” he said.

DGCA sources made it clear that there should not be a situation where the airlines fleece passengers through a huge fare increase. The average price would be lower if tickets are bought in advance. The fares would reach their peak if purchased on the day of travel or just a day before, the sources said.

The regulator, which has established a Tariff Analysis Unit to keep a tab on the prevailing fare levels, would take a decision on the matter very soon, the sources said. The unit would monitor route-wise rates across their networks on a regular basis from now on.

In their responses, the airlines proposed one-way fares ranging between Rs 10,500 and Rs 40,000 for distances of less than 750 km and more than 1,400 km.