A parliamentary panel has proposed the implementation of route-specific capping of airfares and the institution of a definite regulatory entity to supervise ticket pricing, aiming to handle considerations over escalating fares within the aviation sector.
In response to the civil aviation ministry’s suggestions on airfares, the committee highlighted the inadequacy of self-regulation by airways and advocated for a mechanism granting the Directorate General of Civil Aviation (DGCA) authority to control air tariffs.
Presently, airfares stay unregulated by the federal government. The panel reiterated its proposal to discover the creation of an impartial entity vested with quasi-judicial powers to observe airline fares.
Additionally, the committee urged analyzing the feasibility of introducing fare ceilings particular to routes whereas contemplating each airline and passenger pursuits. It really helpful potential modifications to those ceilings throughout peak seasons, topic to prior discover.
“It also recommends that, in order to protect the commercial interests of the airlines, the feasibility of modifying the ceiling during the peak or festival season, with prior intimation, be examined,” the report added.
Acknowledging that income administration and industrial concerns closely affect airfare willpower, the panel underscored the necessity for the ministry to make sure compliance with Rule 13(1) of the Aircraft Rules, 1937, to curb fare surges.
“Hence, it strongly recommends that the Ministry formulate a mechanism to ensure compliance with Rule 13(1) of the Aircraft Rules, 1937, thereby ensuring control over the surge in airfares. Again, the term ‘reasonable profit’ is used without a clear definition or specific criteria, making it a subjective measure,” it mentioned.
Furthermore, the committee critiqued the shortage of readability surrounding the time period “reasonable profit” and emphasised the need of formulating exact standards to gauge profitability. It additionally questioned the fairness of seat worth variations inside the similar flight and urged a overview of insurance policies governing such disparities.
Regarding the apply of unbundling airfare parts, the committee known as for a radical examination of its influence on shopper prices, cautioning that whereas it would cut back bills for some passengers, others may face elevated fees for supplementary companies.
(With PTI inputs)
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