Govt seeks remedial steps from airlines

Civil aviation minister hints at DGCA intervention

Civil Aviation Minister Praful Patel said in Mumbai that his ministry was monitoring the situation. And within a week, corrective steps were being expected.  In case, the airlines failed to take remedial action, the DGCA was empowered to take decisions to benefit air travellers.

“The regulator is not helpless. It should not be presumed that the regulator cannot take action. I am sure they can and they will when the situation warrants,” the minister said.

Patel earlier said neither exorbitant fares nor “predatory fares” (deliberate lowering of ticket prices below the actual costs to out compete with other) would be allowed. In Delhi, top executives of three low cost airlines—Spicejet, Indigo and GoAir—were called for discussions on the issue by Director-General of Civil Aviation E K Bharat Bhushan, who took charge on Friday. Bhushan told reporters that the DGCA was trying to bring some discretion in the pricing issue and wanted the process to be transparent.

“We have told them (private airlines) we want some predictability and fairness in the fares that they charge,” he said.

The DGCA has called representatives of full service airlines—Air India, Jet Airways and Kingfisher—for discussions on Monday. There was public outcry over the unprecedented  hike in airfares by the private airlines. The Civil Aviation Ministry last week rejected the airlines’ proposal of kilometre-based fare slabs, saying there was “no justification” for fare hike in an “arbitrary manner.”

The airlines have “bucket fares” that mean there are certain number of seats reserved in each flight at low fares that can be booked much in advance. As these seats fill, the fares grow progressively to a higher bucket closer to the date of travel.

In Bangalore, Kinghfisher Airlines chairman Vijay Mallya asked “why should the government regulate anything in an era of deregulation and competition.”