DGCA tells airlines to cut fares
Dec. 9: The directorate-general of civil aviation (DGCA) has issued fresh directives to airlines asking them to lower certain exorbitant fares shown on their websites. The regulator has also asked the airlines to explain as to why certain high fares were being charged with a clear fare break-up. The airlines have been told to comply with the directive by Friday evening.
According to top sources in the aviation industry, the analysis of the tariff charts of all airlines had shown that one particular private airline was charging significantly more than others.
“It is not the job of the government to micro-manage fares. The government is not against flexible pricing. But when abnormally high fares are being charged, the government can certainly ask the airlines to explain the rationale behind charging such high fares and can order them to take corrective action. That is what is being done,” top government sources said.
Sources also said that as per the number of seats available per month in all scheduled domestic carriers and the number of passengers who travelled in October and November, the demand had still not outstripped supply. Some private airlines had argued earlier that fares should be determined only by demand and supply.
As already reported in this newspaper on Thursday, the DGCA had received feedback on Wednesday that some airlines had charged exorbitant fares in certain sectors and was expected to order airlines to correct it.
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