'Govt not considering mechanism to curb predatory airfares'

Amidst rising concerns over steep fluctuations in airfares, the government today ruled out considering formulation of a mechanism to curb predatory pricing of air tickets.
Minister of State for Civil Aviation Mahesh Sharma informed the Rajya Sabha that the government does not interfere in the commercial aspects of airlines.
"Airfares are not regulated by the government as they are determined by the interplay of market forces," he said in a written reply.
To a query on whether the government is considering formulation of a mechanism for the capping of economy and business class airfares to curb predatory pricing of passenger tickets by airlines, Sharma replied in the negative.

"As per prevailing regulation, it is the prerogative of the individual airlines to establish their process of determination of airfare. As such government does not interfere in the commercial aspects of airlines," he said.
The Minister also noted that domestic airline pricing runs in multiple levels which are in line with the practice being followed globally.

"The lower fare bucket offered by airlines is available for advance booking. These fares are highly discounted fares and that would entail travelling even during peak/festive season on low fares.
"As time lapses and date of journey approaches closer, the fare in higher side of fare bucket is made available as per the respective airline policy," he said.

In recent times, concerns have been expressed in various quarters, including by Parliamentarians, over steep fluctuations in airfares.
Interestingly, the Minister himself had recently indicated that mechanisms could be put in place to curb predatory pricing ways of airlines.
Meanwhile, Sharma in a written reply said that airlines remain compliant with Rule 135 "as long as the fare charged by them does not exceed the established fare and displayed on their website".
Under this rule of Aircraft Rules, 1937, carriers are required to establish reasonable tariff having regard to all relevant factors, including cost of operation and characteristics of service.