It has been a year since the civil aviation ministry announced that a
fare monitoring cell would be set up to prevent domestic carriers from
indiscriminately hiking cost of tickets , but the ministry is still working on the proposal.
Fares
have almost spiralled by over 50- 60 per cent compared to last year.
Cost of tickets booked for the forthcoming festive season till January
2014 have increased by almost 100 per cent.
Civil aviation secretary K. N. Srivastava told Mail Today on Monday that the ministry is working on the proposal for a monitoring cell but refused to give any deadline as to when it will take off.
According to sources, airlines are pressuring the government from setting up such a cell. Officials admitted that there is no mechanism to know if tickets in the lower price band had been sold or not.
A senior government official said that the delay in setting up a fare monitoring cell clearly shows that the government is under pressure from airlines. "Every year, airlines jack up fares during or before the beginning of the peak season, which begins in October.
The ministry should have come up with a monitoring cell by now," the official pointed out.
In July, civil aviation minister Ajit Singh had said that a fare monitoring cell is ready and will soon be commissioned.
Even on November 26, 2012, Singh had promised to constitute a special cell in next 15 days after airlines hiked fares by over 50 per cent.
The aviation industry and experts had slammed the ministry's move last year contending the consumer's interest are best protected by market forces and the government should avoid regulating fares.
However, Singh had categorically clarified that the government is not trying to regulate fares adding that any cases of discrepancy will be referred to the competition watchdog, Competition Commission of India (CCI).
Strangely, CCI chairman Ashok Chawla on Monday said that the CCI has not got any communication from the ministry regarding its plan to involve CCI in fare monitoring.
Early this month, Air Passengers Association of India had dragged airlines to the CCI following a steep 25- 30- per cent hike in fares alleging cartelisation by the carriers.
"We received complaints from the air passengers' association recently alleging cartelisation and hiking of fares by carriers.
If we find any wrongdoing, we would initiate action against airlines," said Chawla. Passengers had moved CCI earlier as well alleging cartelisation by carriers.
The Directorate General of Civil Aviation (DGCA) has asked airlines to disclose the components in a fare structure on receiving complaints of 'predatory pricing' but does not have the power to take correc-tive or penal action against erring carriers.
ABDUL WAHEED
PGDM 3rd SEM.
Civil Aviation Minister Ajit Singh
Civil aviation secretary K. N. Srivastava told Mail Today on Monday that the ministry is working on the proposal for a monitoring cell but refused to give any deadline as to when it will take off.
According to sources, airlines are pressuring the government from setting up such a cell. Officials admitted that there is no mechanism to know if tickets in the lower price band had been sold or not.
A senior government official said that the delay in setting up a fare monitoring cell clearly shows that the government is under pressure from airlines. "Every year, airlines jack up fares during or before the beginning of the peak season, which begins in October.
In July, civil aviation minister Ajit Singh had said that a fare monitoring cell is ready and will soon be commissioned.
Even on November 26, 2012, Singh had promised to constitute a special cell in next 15 days after airlines hiked fares by over 50 per cent.
The aviation industry and experts had slammed the ministry's move last year contending the consumer's interest are best protected by market forces and the government should avoid regulating fares.
However, Singh had categorically clarified that the government is not trying to regulate fares adding that any cases of discrepancy will be referred to the competition watchdog, Competition Commission of India (CCI).
Strangely, CCI chairman Ashok Chawla on Monday said that the CCI has not got any communication from the ministry regarding its plan to involve CCI in fare monitoring.
Early this month, Air Passengers Association of India had dragged airlines to the CCI following a steep 25- 30- per cent hike in fares alleging cartelisation by the carriers.
"We received complaints from the air passengers' association recently alleging cartelisation and hiking of fares by carriers.
If we find any wrongdoing, we would initiate action against airlines," said Chawla. Passengers had moved CCI earlier as well alleging cartelisation by carriers.
The Directorate General of Civil Aviation (DGCA) has asked airlines to disclose the components in a fare structure on receiving complaints of 'predatory pricing' but does not have the power to take correc-tive or penal action against erring carriers.
ABDUL WAHEED
PGDM 3rd SEM.
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