A new unit may be set up in the Ministry of Civil Aviation to monitor domestic air fares.
Official sources told Business Line that the proposal is aimed at ensuring greater transparency in the pricing of domestic air tickets.
“Airlines Web sites show the basic fare. But a passenger does not know how much the fare is being increased when price of aviation turbine fuel goes up or if there is any decrease in fares if the price comes down. The proposed unit will try and ensure that a passenger gets some understanding on how much of the fare is for the seat, how much is towards the increase or decrease in fuel prices and other charges,” a senior Government official said.
The tariff unit in the Directorate General of Civil Aviation (DGCA) monitors fares currently. The DGCA has a lowest and highest level for the fare which can be charged by domestic airlines.
In case any airline breaches the upper level of the fare bracket listed by the DGCA, it is warned. The decision has been taken to ensure that there is no profiteering by any airline in peak season or due to sudden withdrawal of capacity by any of the eight scheduled airlines.
This has become necessary as currently at least one airline – Kingfisher – has seen a sharp decline in the number of daily flights operated. The airline currently operates about 100 daily flights down from over 400 earlier.
The need for the unit is being felt as currently most airline Web sites show the various basic fare levels which are available and the fuel surcharge which has to be paid for purchase of the air ticket.
Officials added that proposal was at a very “tentative” stage and no final decision has been taken on the matter.
ashwini.phadnis@thehindu.co.in