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A parliamentary panel proposes capping airfares according to certain routes

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<p>A parliamentary commission, concerned about soaring airfares in different regions, has suggested regulating airfares according to certain routes and creating a separate organization to regulate ticket costs.</p>
<p><img decoding=”async” class=”alignnone wp-image-393366″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-a-parliamentary-panel-proposes-capping-airfares-according-to-certain-routes-video-.jpg” alt=”theindiaprint.com a parliamentary panel proposes capping airfares according to certain routes video” width=”1004″ height=”669″ title=”A parliamentary panel proposes capping airfares according to certain routes 9″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-a-parliamentary-panel-proposes-capping-airfares-according-to-certain-routes-video-.jpg 510w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-a-parliamentary-panel-proposes-capping-airfares-according-to-certain-routes-video–150×100.jpg 150w” sizes=”(max-width: 1004px) 100vw, 1004px” /></p>
<p>Following its review of the ministry of civil aviation’s comments about airfares, the committee concluded that airline self-regulation of ticket pricing has not been successful.</p>
<p>The report on the government’s response to its recommendations and observations about airfare fixing was presented on Thursday by the Parliamentary Standing Committee on Transport, Tourism, and Culture, which is affiliated with the Department.</p>
<p>The panel stated in the report that it has observed several instances of unusually high airfares, particularly during festivals or holidays, and that it believes self-regulation by airlines has not been successful. The panel also suggested that a system be developed that would give the DGCA the authority to regulate air tariffs.</p>
<p>As of right now, the government neither sets nor regulates airfares.</p>
<p>In addition, the panel restated its suggestion and encouraged the government to investigate the possibility of creating an independent body with quasi-judicial authority to regulate airline ticket prices.</p>
<p>The committee believes that a route-specific pricing cap may be investigated while taking the interests of the airlines and the consumer into consideration, according to the study.</p>
<p>“It also suggests that the viability of adjusting the ceiling during the peak/festival season, with prior notification, may be investigated, in order to safeguard the airlines’ commercial interests,” the study said.</p>
<p>The committee claims that the setting of airfares is determined by revenue management and business objectives including maximizing shareholder value; passenger concerns are not taken into consideration during this process.</p>
<p>Therefore, it highly suggests that the Ministry develop a system to guarantee that Rule 13(1) of the Aircraft Rules, 1937 is followed, guaranteeing a check on the escalation of airfares.</p>
<p>Once again, the word “reasonable profit” is employed without definition or precise standards, making it a metric that is vulnerable to interpretation, the report said.</p>
<p>The panel also said that it continues to believe that the policy regarding differential ticket pricing for the same aircraft needs to be reexamined since it goes against the equity principle.</p>
<p>The committee stated that while the practice may lower costs for some passengers, it may also result in increased costs for others who end up paying for various add-ons. It also stated that the claim that unbundling lowers the cost of air travel for customers who desire only the basic product needs to be closely examined.</p>


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