20.1 C
New Delhi
Thursday, March 23, 2023
HomeNewsParl panel asks govt to ensure airlines do not practice predatory pricing

Parl panel asks govt to ensure airlines do not practice predatory pricing

A parliamentary panel has asked the civil aviation ministry to cap the upper and lower levels of airfares, and ensure that predatory pricing mechanism is not adopted by the airlines under the cloak of a free market economy, according to the news agency PTI. 

The Department-related Parliamentary Standing Committee on Transport, Tourism, and Culture made these recommendations in its report on the ministry’s demand for grants for 2023-24. The report was tabled in Parliament on Monday.

“A perfect balance has to be maintained between the commercial interest of the private airlines and the interest of the passengers so as to enable the private airlines to grow and at the same time the interest of passengers should also be kept in mind so that they are not fleeced in the garb of commercialization,” the panel said. 

This came following complaints about a sudden surge in air ticket prices during peak travel seasons. 

Presently, the surge in airfares does not reflect any sort of mechanism on part of the ministry to control the faress, based on existing Aircraft Rules, 1937 as the prices go beyond the acceptable or justifiable limits of reasonable profit and generally prevailing tariff, the committee observed. 

On the one hand, the government plans to make air transport affordable for the common man and the air capacity is being increased but on the other hand, there is no commensurate expansion of the capacity to bring in aircraft. 

This creates a lack of airline tickets considering the high demand and leads to an increase in the prices, as per the report seen by PTI. 

“The committee recommends that there should be a mechanism with the ministry such as capping of upper and lower prices to stop the practice of ‘predatory pricing’ or the sudden surge in prices… even though price buckets are being created as per international aviation norms, a close watch has to be maintained by the DGCA & the ministry and a mechanism should be devised to monitor the websites of various airlines to prevent them from misguiding passengers,” it stated. 

Further, the panel said that in case private airlines do not publish the correct information regarding fares, they should be penalized for it.

Hence, the committee recommends the civil aviation cministry should formulate a pricing mechanism for airfares to ensure that passengers are not charged exorbitant prices,” it added.


(With PTI inputs)

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.


Source link

Our Archieves