New Delh: A day after Civil Aviation Ministry warned the airlines against predatory pricing, aviation regulator the Directorate General of Civil Aviation (DGCA) made it clear to the private airlines in a meeting in New Delhi on Saturday that steep airfares have to come down.
A meeting between DGCA officials, Civil Aviation Ministry and private airlines represented by SpiceJet was held in New Delhi where the airline companies were asked to explain the proposed increase in airfares.
DGCA told the airlines that they would now have to declare the maximum fares sector wise in accordance with the air transport rules. But the DGCA and Civil Aviation Ministry did not spell out the action that would be taken against the airlines for charging excessive fares.
DGCA Director General Bharat Bhushan said that they have asked airlines to be reasonable about their demands and be transparent about their bucket seats. Buckets seats are those that are booked at the last minute.
Private airlines had already submitted a fare increase proposal to the DGCA which is based on distance and the cost goes upto as a high as Rs 40,000 for distance upto 1400 kilometers.
However, Kingfisher Airline owner Vijay Mallya spoke against government trying to regulate airfare.
"The media has created a controversy that dos not exist. You have taken the highest band that exists now, comparing it with the lowest band several months back. People pay much lesser than these prices even during peak season. Bandwidth pricing are followed all across the world. How can the prices be compared? Airline is a commercial commodity," said Mallya.
The airlines have in the last few days increased airfares. A trip from Delhi to Chandigarh could cost over Rs 14000 while a trip from Delhi to Cochin one way even on a low cost airline can like SpiceJet and JetLite will cost over Rs 20,000.
Many passengers and MP's from far flung areas like the Andaman and Nicobar islands have been continuously writing to Civil Aviation Minister Praful Patel about the high fares.
Patel had on Friday said that a mismatch in the demand and supply did not call for the airlines to take undue advantage.
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