Airfare hike: Ministry asks DGCA to examine the matter | india | Hindustan Times
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Airfare hike: Ministry asks DGCA to examine the matter

india Updated: Sep 29, 2011 15:40 IST

PTI
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With high festive season demand pushing up airfares, aviation regulator DGCA has been asked by civil aviation ministry to examine if it could take some steps provide any relief to air travellers.

"I have asked DGCA to use its powers and look into the matter, although beyond a point, we cannot do anything," civil aviation minister Vayalar Ravi said replying to a question on hiking air fares by airlines ahead of the festival season.

Noting that there is a "flexible mechanism" that governs air fares, he said the regulator would examine the issue as it affected the travelling public.

The fares of almost all major airlines have risen by an average of ten per cent due to the festive season, though sources in the airline industry maintain that due to high passenger traffic, the low-fare buckets were getting filled up fast leaving only high fare options.

The fare monitoring committee of the directorate general of civil aviation, set up a year ago, was already analysing the fare data on a daily basis, the sources said.

Asked to comment on planned shut down of low-cost carrier Kingfisher Red, Ravi refused to give a direct reply but said soaring prices of aviation turbine fuel (ATF) was a matter of concern for entire aviation industry.

Expressing concern over rising jet fuel prices, Ravi said he would soon write to state governments to reduce sales tax on ATF, though he had made similar requests earlier too.

"ATF price is a major challenge facing the aviation industry. ATF is going up because of increase in crude prices.

"In India, sales tax on ATF is affecting the industry. I have already written to state governments to reduce the sales tax on it. I will write to them again," Ravi said.

Asked as to when the next meeting of the Group of Ministers on Air India will be convened, he said it will take place soon.