Praful for air fare price bands

Nov 26, 2010 - Age Correspondent |

New Delhi

Vowing to “bring discipline” to the aviation sector, civil aviation minister Praful Patel on Thursday warned airlines the government would take action against them if they continued charging unduly high fares and suggested that airlines formulate a price band within which fares should be charged.

Pointing out that “predatory pricing” cannot be justified, the minister said airlines cannot go for a “free run” on fares.
Stating that the DGCA had sent a notice to some airlines, Mr Praful Patel said the government would “discuss ways to regulate fares on low and high (price) bands”.
“Several airlines have increased their fares by a big margin. The DGCA used its powers, asked for information and has given orders that in case of arbitrary increase of fares, action will be taken against the airlines,” he said.
Asserting the government was “not against flexible pricing”, Mr Praful Patel, however, said passengers should enjoy low fares.

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