<p>The government has ruled out interfering in fixing airfares fearing litigation by foreign airlines, but a Parliamentary panel wants it to take steps to ensure that the public is protected from predatory pricing.<br /><br /></p>.<p>The Parliamentary Standing Committee on Transport, Tourism and Culture has rejected the contentions of the Ministry of Civil Aviation for not interfering in ensuring that airfares do not hit the skies.<br /><br />In the report tabled in Parliament on Wednesday, the panel, headed by Trinamool Congress MP K D Singh, said that it was not satisfied with the response of the Ministry on dealing with high airfare.<br /><br />To the recommendation to tackle “exorbitant” fare from Kerala airports to Gulf sector, the ministry had said that it does not normally interfere in the commercial aspects of airlines.<br /><br />“In case Indian carriers operating in Gulf sector are asked to provide much lower fare for Indian citizens, the issue may translate into discriminatory or predatory pricing practices and invite litigation by foreign carriers. Also, the issue of international operations by domestic airlines is covered under bilateral agreements,” the ministry said.<br /><br />However, the panel was not ready to buy this argument and asked the ministry to ensure that the public is protected from predatory airfares.<br /><br />The rising airfare in tourist season was another concern raised by the panel, but again the ministry said imposition of airlines fare restriction may reduce ability of the competitiveness among Indian carriers to their foreign competitors and also may attract litigation on predatory pricing by foreign airlines.<br /><br />On tackling predatory pricing, the committee had earlier said that it was hurting not only individuals, but the country's economy as well.</p>
<p>The government has ruled out interfering in fixing airfares fearing litigation by foreign airlines, but a Parliamentary panel wants it to take steps to ensure that the public is protected from predatory pricing.<br /><br /></p>.<p>The Parliamentary Standing Committee on Transport, Tourism and Culture has rejected the contentions of the Ministry of Civil Aviation for not interfering in ensuring that airfares do not hit the skies.<br /><br />In the report tabled in Parliament on Wednesday, the panel, headed by Trinamool Congress MP K D Singh, said that it was not satisfied with the response of the Ministry on dealing with high airfare.<br /><br />To the recommendation to tackle “exorbitant” fare from Kerala airports to Gulf sector, the ministry had said that it does not normally interfere in the commercial aspects of airlines.<br /><br />“In case Indian carriers operating in Gulf sector are asked to provide much lower fare for Indian citizens, the issue may translate into discriminatory or predatory pricing practices and invite litigation by foreign carriers. Also, the issue of international operations by domestic airlines is covered under bilateral agreements,” the ministry said.<br /><br />However, the panel was not ready to buy this argument and asked the ministry to ensure that the public is protected from predatory airfares.<br /><br />The rising airfare in tourist season was another concern raised by the panel, but again the ministry said imposition of airlines fare restriction may reduce ability of the competitiveness among Indian carriers to their foreign competitors and also may attract litigation on predatory pricing by foreign airlines.<br /><br />On tackling predatory pricing, the committee had earlier said that it was hurting not only individuals, but the country's economy as well.</p>
