Wants aviation ministry to ensure that airlines pass on the benefit of 50% reduction in jet fuel price to flyers by way of slashing fares
New Delhi : A parliamentary panel recommended for fixing of an upper limit for the economy class airfares to curb the “exorbitant” air fares during the peak tourist seasons. The panel, headed by Trinamool Congress Rajya Sabha MP Kanwar Deep Singh, also recommended to the ministry to ensure that airlines pass on the benefit of the 50 per cent reduction in jet fuel price to the consumers by way of slashing fares.
“The Committee also noticed that the airfares are exorbitant during the peak tourist seasons which are also causing hindrance to passenger flow in the country…
“The Committee also recommends that, in view of the predatory charges levied by the airlines during peak times, the Government should fix an upper limit especially in the economy class of airfares so that there should not be unhealthy practice of raising fares exorbitantly by the airliners,” the Department-Related Parliamentary Standing Committee on Transport, Tourism and Culture said in its 231st report.
Suggesting the Government for launching more flight to the Middle East (where a large number of Indian expats live) especially during the summer holidays to accommodate the peak season demand, the panel said that “The Prime Minister in one of his visits to Middle East has already asked the Ministry of Civil Aviation to do something about such prices.”
Prime Minister had last August expressed “concern” over predatory pricing by the domestic carriers after he reportedly received a representation that airfares are high during the Onam festival that is celebrated in Kerala.
Noting that the price of aviation turbine fuel in Delhi came down to Rs 35,127 per kilo litre as on March 1 this year compared to Rs 74,204.74 per kilo litre on December 1, 2013, the report said, “the Committee, however, notes that even after 50 per cent reduction of the ATF prices over a period of time, the airlines have not passed on the benefit of reduction in ATF prices to the consumers.”
