What DGCA has managed to do through this action is to have drawn attention to itself and some of its known bad habits. One is the great urge to fiddle with fares whenever it gets a chance. Not so long ago, the minister in question, after informing the Rajya Sabha that the government had no plans to regulate air fares, went on soon thereafter to say that predatory pricing could be prevented through the DGCA. How this would happen when there is already so much competition is quite unclear. On the same issue of prices, the draft aviation policy contains a proposal to cap fares on relevant routes to promote regional connectivity. But costs along different regional routes differ and selecting one fare out of a hat makes little sense.
Considering that the civil aviation ministry and the DGCA are so prone to mishaps, this latest occasion provides an opportunity to raise some longer-term issues. The first and foremost is: why is the DGCA still around? It should already have been replaced by an independent Civil Aviation Authority to take care of economic regulation of the industry. The second issue is: why is Air India allowed to carry on, in a business-as-usual mode? The last government spent Rs 30,000 crore without any sign that the state-owned carrier will turn healthy and the current government has not called a complete halt to such infusion of funds. Clearly, governments in India change but the ability of officialdom (both the political executive and the bureaucracy) to hang on to organisations, which exist essentially for their benefit, remains unchanged.
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