By Staff Correspondent
The Government does not regulate airfares. Under the provision of Sub Rule (1) of Rule 135, aircraft Rules 1937, airlines are free to fix reasonable tariffs having regard to all relevant factors, including the cost of operation, characteristics of service, reasonable profit and the generally prevailing tariff. Airfare so established by the airlines is published on their respective website under Sub Rule (2) of Rule 135, Aircraft Rules 1937.
To prevent excessive charging and sudden surges in airfares and to promote transparency by scheduled domestic airlines, the Directorate General of Civil Aviation (DGCA) has issued Air Transport Circular 2 of 2010, wherein airlines are required to display on their respective websites the tariff sheet route-wise across their network in various fare categories and the manner it is offered in the market.
DGCA has a Tariff Monitoring Unit that monitors airfares on specific routes monthly to ensure that the airlines do not charge airfares outside a range they declare.
The COVID-19 pandemic has adversely impacted businesses’ revenue streams, including the aviation sector, during the last two years. Under normal circumstances, airfares are neither established nor regulated by the Government. However, the Government introduced fare bands with upper and lower limits as an exceptional measure due to unprecedented circumstances. The fare bands serve the dual purpose of protecting the interests of the travellers and the airlines.
The fare bands were revised from time to time, given the substantial hike in the price of Aviation Turbine Fuel (ATF) to keep the aviation sector viable while protecting the interests of the passengers. Presently, fare capping is applicable on a rolling basis for a 15 days cycle. The Government regularly reviews the situation. Further, decisions regarding the domestic scheduled operations and relaxation in fare capping is subject to the prevailing COVID-19 situation, the status of operations and passenger demand for air travel.
This information was given by the Minister of State in the Ministry of Civil Aviation General (Dr) V. K. Singh (Retd) in a written reply to a question in Rajya Sabha today.
