Thrust on raising seat capacity of airlines flying to ME:Govt

Government today said it was giving thrust to increasing the seat capacity of flights to the Middle East so that airfares to the region are lowered.
Replying to queries in Rajya Sabha, Civil Aviation Minister Ashok Gajapathi Raju, however, made it clear that government cannot regulate the airfares after he was asked about bringing down price of air tickets for Indian labourers emigrating to Gulf countries.
"Air fares are not regulated by the government. Sub Rule (1) of Rule 135 of the Aircraft Rules, 1937 provides that every air transport undertaking engaged in scheduled air services shall establish tariff having regard to all relevant factors, including cost of operation, characteristic of services reasonable profit and the generally prevailing tariff.

"Accordingly airlines are free to fix tariff," Raju said in his reply.
The minister was asked whether the government used to sell tickets at cheaper rates to the labourers emigrating to Gulf and whether this facility is still available to Indian labourers. "No Sir. Does not arise," the minister said in the reply.
Noting that till 1994, airfares within India were controlled, he said that the member's suggestion is that "airfare in whole universe be controlled. This is beyond Indian government."

At the same time, the minister noted that increasing capacity will bring down fares and informed that the number of seats in airlines flying to Gulf from India has gone up by 50 per cent.

"Wherever capacity increases, it has a depressing effect on prices. We are working on it," Raju said.
Replying to another supplementary, the Union Minister asserted that "Government does not bear the losses of airlines and gain from their profit" as Airlines is a private business.