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PAC meet sees intense session on high airfares, tariff regulation
According to a senior lawmaker aware of the developments, many MPs sought accountability from private airport operators and airlines and sought relief against spiraling airfares for passengers.
Lawmakers cutting across party lines expressed concern over skyrocketing airfares and lack of corrective steps by government agencies and the regulator at a meeting of the Public Accounts Committee (PAC), which had called officials of the civil aviation ministry, DGCA, AERA and BCAS on “levy and regulation of fees, tariffs, user charges, etc on public infrastructure and other public utilities”.
According to a senior lawmaker aware of the developments, many MPs sought accountability from private airport operators and airlines and sought relief against spiraling airfares for passengers.
PAC Chairperson KC Venugopal described the meeting of the panel, which has witnessed fiery and at times acrimonious discussions along party lines in the past, as “one of the best” sittings.
He said MPs expressed concern that the Airports Economic Regulatory Authority (AERA) “is not acting properly as a regulator”.
Many MPs pointed out to a few airports, where the User Development Fee (UDF), which is included in the airfare, has gone up multiple times after the airports were handed over to private operators.
Venugopal said, “Concerns were raised by members that airfares are skyrocketing, and there is no action from the Directorate General of Civil Aviation (DGCA) or the Civil Aviation Department.”
Officials said some MPs called for an amendment in the AERA Act to make it more effective in regulating fares amid general unhappiness over issues like an “arbitrary” rise in user development fees and price surge, as they alleged that the existing system fell short of fixing accountability and transparency in the functioning of private operators.
The civil avitation secretary and AERA chairperson were among those who appeared before the panel in the meeting in which presentations were made on related issues.While AERA is tasked with regulating tariffs for services covering major airports, the DGCA is primarily concerned with safety issues.
