DGCA monitors airfares to ensure airlines do not charge airfares outside declared range: Union MoS Gen VK Singh

New Delhi [India], February 2 (ANI): Directorate General of Civil Aviation (DGCA) has a Tariff Monitoring Unit that monitors airfares on certain routes on a monthly basis to ensure that the airlines do not charge airfares outside a range declared by them, General (Rtd) VK Singh, Union minister of state for civil aviation said in Lok Sabha on Thursday.
Member of Parliament Thomas Chazhikadan had asked the question whether the Government proposes to direct or instruct airlines to increase their frequency to avoid an increase in air-fares during the holidays.
In a written reply, Singh mentioned that after the repeal of the Air Corporation Act in March 1994, the Indian domestic aviation market has been deregulated. Consequently, airlines are free to induct capacity with any aircraft type for selecting whatever markets and network they wish to service and operate with compliance of Route Dispersal Guidelines (RDGs) issued by the Government across the country.
Thus, it is up to the airlines to provide air services to/from any airport in the country depending on their operational and commercial viabilities, he said.
On being asked about the Government has taken or proposes to take any other measures to curb or check the rise in airfare, he replied that after the deregulation of the airline sector, airfare is market driven and is neither established nor regulated by the Government. Air ticket prices generally vary depending on market forces. Airline pricing runs in multiple levels {buckets or Reservation Booking Designator (RBDs)} which are in line with the practice being followed globally. Due to dynamic fare pricing, the tickets bought in advance are much cheaper than those purchased near the date of travel.
The airlines are free to fix reasonable tariffs under the provisions of the Aircraft Rules, 1937 having regard to all relevant factors, including the cost of operation, characteristics of services, reasonable profit and the generally prevailing tariff.
Directorate General of Civil Aviation (DGCA) has a Tariff Monitoring Unit that monitors airfares on certain routes on a monthly basis to ensure that the airlines do not charge airfares outside a range declared by them. The airlines are compliant to the rule of the Aircraft Rules, 1937 as long as the fare charged by them is in line with fare displayed on their website, he mentioned. (ANI)