Says DGCA not happy with airlines' high demands, will strike fine balance Civil Aviation Minister Praful Patel yesterday rejected a proposal for a massive hike in fares by domestic airlines. "The airlines did come back with some kind of answer (on airfares), the Directorate General of Civil Aviation (DGCA) is certainly not satisfied with the answer provided by most of the airlines," Patel said while referring to the proposal sent by the airline industry to the aviation watchdog. <img alt="" src="/imagedata/2010/dec/Patel.jpg" border="5" /> Praful Patel He said the DGCA would like to know from the airlines in a more transparent and definitive way the issue of airfares being charged to passengers. According to him, the DGCA was not a price determining agency but at the same time it could not remain a mute spectator. "We are not a fare determining body or authority but we are also not a helpless regulatory authority, therefore we would like to strike a fine balance," Patel added. Patel's comments come as the airline industry, which was served notice by the DGCA on airfares, submitted a proposal which determined prices based on the distance travelled between destinations. "We have submitted a proposal to the DGCA regarding the prices on various routes on slabs which are based on distances of the destinations," an official with a leading low cost carrier (LCC) said. Price bands According to him, the airlines have proposed price bands on four distance-based slabs, which include distances like up to 750 km, 750-1,000 km, 1,000-1,400 km and over 1,400 km. The new proposed fares for distances up to 750 km on an LCC were set at Rs 2,200, while the maximum fare on a full service carrier (FSC) was put at Rs 13,000. For distances between 750-1,000 km the minimum ticket price is mooted at Rs 3,000 (LCC)-Rs 20,000 (FSC); between 1,000-1,400 km: Rs 4,000 (LCC)-Rs 25,000 (FSC); and over 1,400 km: Rs 5,000 (LCC)-Rs 40,000 (FSC). Earlier, the DGCA had issued notices to several airlines on ticket prices, and their replies were expected by December 1. "We are working on a transparency plan on the prices so that the passengers could be made aware of them. Aware passengers are the best regulation," Director General of Civil Aviation Dr Nasim Zaidi said here. The aviation regulator also established a Tariff Analysis Unit to keep a watch on the fare levels on a route-wise basis across airlines on a regular basis.

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Says DGCA not happy with airlines' high demands, will strike fine balance

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