Lok Sabha Question No. 5460 (UNSTARRED), answered on 2017-04-06
Subject: Charging of Arbitrary Air Fare
Ministry: CIVIL AVIATION
Asked by: RAJ KUMAR SINGH

## GOVERNME\T  OF I\DIA MINISTRY OP CIVIL AVIATION LOK SABHA U\STARRED Ql  ESTION NO. : 5460

(To br an\$ered on the 6tn April 2017)

## CHARGING OF ARBITRARY AIR FARE

5460.

SHRI R.K. SINGH

Will the Minister  of CIvIL AVIATION araP ftaraa arff be pleased to state:-

- (a) whether the air fare between Srinagar - Mumbai and Srinagar - Delhi went up to absurd levels Rs. 73647l- for a one way ticket to Mumbai on the z4thtzath January,20l7 and the ticket lrom Srinagar to Jammu cost Rs. 20648/-  whereas on the same day a ticket from New York to Mumbai was available  for Rs. 38379/- and if so, the details  thereof;
- (c) whether such incidents have happened in past as well' if so' the details thereof; and
- (b) whether the Government  has lhiled in its primary duty of pr-eventi\_ng dxploitation of the citizens  by the unscrupulous airline which had formed a cartel, if so, the details thereof;
- (d) The steps, the Government proposes  to take to ensure that such exploitation of the people does not recur?

## ANSWER

Minister of State in the Ministry  of CML AVIATION ffin ftroraaiffcs  fr rrwai{

(Shri Jayant Sinha)

- (a): As per prevailing  regulation' date rvise' sector wise air fare details  are not requireil to be submitted to this Ministry by the scheduled airlines. Therefore' no-such analysis has been carried out by Director  General of Civil Aviation (DGCA),
- (b) to (d): Air fares are not regulated b1- the Governmenl.-Under  the\_provision dtsub Rule (1) of Rule 135, Aircraft Rules 1937, airlines are free to fix reasonable tariff having regard to all relevant factors, including the cost of operation,  characteristics  of service,  reasonable profit and the generally pievailing  tariff. Air fare so established by' the airlines  is, published on their iespectivi website under the provision of Sub Rule (2) of Rule 135, Aircraft Rules 1937.

The domestic airline pricing runs in multiple levels  [bucket  or RBD (Reservation  Booking Designator)l which are in line rvith the practic€ lbllowed globally.  Usually, the lower levels of the lhre in the fare bucket are assigned to advance purchase (popularly known as Appex Fares) bookings (e,g.  up to 90,60,30,14  and 07 days before departure). As time lapses and date of  journey  approaches  closer (from 07 days to dat€ of departure),  the fare in higher side of fare bucket are availabl€ for purchase.

Airline remains compliant to the regulatory provisions  of Rule- 135 as long as the fare charged by them does not exceed the fare established and displayed on their $ebsite, Directorate General of Civil Aviation has also set up a Tariff Monitoring  Unit in 2010 that monitors airfares on certain routes selected  on random basis to ensure that the airlines do not charge airfares outside the range declared  by them. The analysis has shown that the airfares r€mained well within the fare bucket displayed by the airlines on the respective website, Anti-competitiye actions such as Cartclisation, Predatory pricing, Price fixing and Gouging are regulated by Competition Commission of India. If necessary, appropriate action is taken by them.