Lok Sabha Question No. 1267 (UNSTARRED), answered on 2017-02-09
Subject: Regulation of Air Fare
Ministry: CIVIL AVIATION
Asked by: HARISHCHANDRA DEORAM CHAVAN, SURESH KODIKUNNIL, DINESH TRIVEDI, RAM TAHAL CHOUDHARY, SRINIVAS KESINENI, NEPAL SINGH

## GOVIII{NMEN1'  O}' INDIA IIIINISTRY Ot' CT\/IL AvIAIION

LNST{RRID  OUESTION  NO. : I267 (To bc answered o-n the 9tb February  201?)

## LOKSABHA

## REGULATION OF AIR FART

1267,

SERI HARISHCHANDRA CHAVAN SHRI KODIKUNNIL SURESH SHRI DTNESH TRIVEDI SIIRI I{Ar}I TAHAL CHOUDIIARY DR. NEPAL STNGH SHRI KESINENI NANI

## Will the Mlnister  of CML AVIATION mdrTfr{rildri*

bc pleased to stste:-

- (a) wh-ether  airline companies  are cxploitlBg thc passengers  often travclling  by nir by charging them 25 to 50 thousand rupees as fare for one sector and if so, the reaction  of the Government thereto;
- (b)  the reuons for not lixing the fares ofe&ch sector on minlmum basis by the Governm€nt;
- (d) whether the Government  proposes to r€yise existing fare calculatiotr  and determination policies- and -s-et a limii or bar dynamic pricing to prryeDt exorbitant  pricing for ttckets by domestic  alrlines during calsmities and if so, the dctrriis thereof;
- (c) wh€ther  the Governmellt is conducting an enquiry into all€gations  of domestic airlines chorging  erorbitant r{tes for tickets  even in €vents  of nstural calamities  as allegedly hsppened durlng the perlod for Chennai floods, if so, the details thcreof;
- (c) whether  thcre arc motritoring mechanisms to ensure that airline companies follow the above regulations and if so, thc details ther€4f; end
- (f) whether the Government has made sry announcement  regarding  the alrfare beitlg 2500/rupees per hour which was publlshed  in the newspapers  snd lf so, the detolls thereof

## ANSWER

## Mirister of Staie in the Ministry of CML A!,IATION ul?ir Itfi ild ri{.ru } rw ai*

(Shri  Jayant Sinha)

(a):-No suchanalysis has lrccn carri€d  out by Directorate General of Civil Aylation  @GCA)  as rirline remain  complir-trt  with the statutory  provisions  of regulation  by keeping airiare  witlin the farr t uc!:(t limits  displayed  by them on their respective  website.

(b):  Wiih thc-repeal  oI Air Corporatior Act in Nlarch 1994, the provision  of air fare approval was disprnsed  lvith by the Covernmcnt. Under tbe prorision of Sub Rule (l) of Rulc l35of the AircraftJtules,  l-937,trery  airtransport  undedaking eDgaged  in Scheduled air senices require to establish tariff having regnrd  to all relevant factors,  including cost of operatlon, characteiistic of services, relsonable  prolit and th€ generally preyailing  tariff. The fares so established,  are required to be dis-phygd by the aii.lines  on tbcir rvrhsites  in compliance ofSub Rule  (2) of itule 135 of the Aircraft Rule, I937.

(c)  &  (d):  Airlines  remaitr  complisnt  \vith the regulations  as long as thc fare charged by them does not ercccds the fare structure  displayed oII their websltc. Special  attention is  p-aid  by DGCA in coordinatrd  with schrduled domestic  rlrlines during occurrence  of natural c;lamlty period specificrlly for evacuation  of stranded at nominal charges.  r:arriage  of relief materiai, operation ofarlditional flights and ensuring  that tirline does not revise theii airfare during such period by acdve airfot'e monitoring.

DGCA has also set up a Tariff Monitoring Uoit in 2010 that monitors airfares on certain routes selected  on random basis to ensure that the airlines do [ot charg€  airlares outside the range declsred  by tbem. The analysis has shown that the rirfares remain.:rd  rryell  within the farc buckit uplosded by the airllnes  on the rcspectiye  website.

(e):  DGCA has issucd Air Transport  Circular 2 of2010  wberein rirlines are requlred to disphy ou their respective  }I'ebsite the tariff sheet route-wise  lcro$s their network  in various  iari categories and the matrnflr it is offered in the market.  The i[tention behind the above directions is to keep the passengers  informed of priclng  pattern of airlines.

(f); The Regional Corrnectivit)  Srheme (RCS) - UDAN has been lerrched or 21.10.2016  to facilitste  /  6llmulat€ regionsl  air connecllvlty  making  it affor dalrlc,