Published on 20/03/2017 9:50:26 AM | Source: Dion Global Solutions Ltd.

Par panel asks Centre to consider capping airfares

Posted in Industry News | #Industry #Parliament #Government #DGCA


A Parliamentary panel has suggested the Central Government to look at capping airfares and control the artificially created exorbitant prices in the Gulf sector, as per the media reports. The move comes amid persisting concerns among certain quarters that airlines are levying high air ticket prices, especially during festival seasons, said the PTI report.

The panel said that the, Civil Aviation Ministry should consider fixing an upper limit for every sector, especially in the economy class of air ticket prices. “We are a developing country and many of the pricing mechanisms applicable to the developed countries may not suit the Indian people and Indian conditions,” it added. The Department-related Parliamentary Standing Committee on Transport, Tourism and Culture has made the recommendation in its report tabled in Parliament last week.

The report is on the Demand for Grants (2017-18) of the Ministry of Civil Aviation. According to the panel, the ministry should ‘specify the limitations, legal and otherwise’ which need to be amended or other measures to be put in place to tackle the problem of exorbitant airfares after consultation with stakeholders. Further, the panel said the Civil Aviation Ministry and DGCA should intervene effectively to control the “artificially created exorbitant prices in the Gulf sector”.