Lok Sabha Question No. 292 (STARRED), answered on 2015-08-10
Subject: Airfares
Ministry: CIVIL AVIATION
Asked by: PANKAJ CHOWDHARY, FAGGAN SINGH KULASTE

## GOVERNMENT OF INDIA

## MINISTRY OF CIVIL AVIATION LOK SABHA STARRED QUESTION NO. : 292

(To be answered on the 10 th  August 2015)

## AIRFARES

## *292. SHRI PANKAJ CHAUDHARY SHRI FAGGAN SINGH KULASTE

## Will the Minister of CIVIL AVIATION

be pleased to state:-

(a) whether certain airlines including private airlines are reportedly indulging in predatory pricing of airfare and/or charging airfares arbitrarily from the passengers and if so, the reaction of the Government thereto; (b)  whether complaints have been received against private airlines regarding  arbitrary/predatory  pricing  of  tickets  and  last-minute cancellation of bookings without assigning any reason during the last three years and the current year; (c)  if  so,  the  details  thereof  along  with  the  action  taken  by  the Government  thereon;  and

- (d) the steps taken or being taken by the Government to curb such practices in the interest of passengers and bring about uniformity in airfares?

## ANSWER

## Minister of CIVIL AVIATION (Shri Ashok Gajapathi Raju

Pusapati)

- (a) to (d) : A Statement is laid on the table of the house.
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STATEMENT TO BE LAID ON THE TABLE OF THE LOK SABHA IN REPLY TO STARRED QUESTION NO. 292 DATED 10.8.2015 REGARDING AIR FARES.

- (a)  to  (c):  Representations  have  been  received  from  time  to  time regarding alleged " arbitrary" fares charged by the airlines at times. The position in this regard is as follows:

Air fares are not regulated by the Government. Under the provision of Sub 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  services,  reasonable  profit  and  the generally prevailing tariff. Air fare so established by the airlines is published on their respective website under the provision of Sub Rule (2) of Rule 135, Aircraft Rules 1937.

Airline remains compliant  to the regulatory provisions of Rule -135 as long as the fare charged by them does not exceed the fare established ad displayed on their website.

(d) The steps taken by DGCA to curb such practices are as follows:

- i)  In order to prevent excessive charging and sudden surges in airfares and to promote transparency by scheduled domestic airlines, DGCA has issued Air Transport Circular 02 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.  The  intention  behind  the  above  directions  is  to  keep  the passengers  informed  of  pricing  pattern  of  airlines.
2. ii) DGCA 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 remained well within the  fare bucket  uploaded  by  the  airlines  on the respective websites.
3. iii)  Directorate  General of Civil Aviation has issued Civil Aviation Requirements ( CAR) Section -3, Series -M, Part IV on "facilities to be provided to passengers by airlines due to denied boarding, cancellation of flights and delay in flight". Facilities/ compensation specified in the CAR are required to be provided by airlines in case of flight cancellation
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