Par panel pitches for capping maximum airfares

This comes against the backdrop of rising concerns in various quarters about steep fluctuations in airfares.

Amid concerns over steep fluctuations in air ticket prices, a Parliamentary panel has suggested capping maximum airfares on domestic routes.

The Civil Aviation Ministry told the panel that the "government no longer regulates the airfares" while stating that considerable information is provided to the public in a transparent manner on air ticket prices.

The Department-Related Parliamentary Standing Committee on Transport, Tourism and Culture -- chaired by K D Singh -- has suggested cap on maximum airfares in its report tabled in Parliament on Tuesday.

The report pertains to action taken by the government on the observations/recommendations of the panel on the Ministry's Demands for Grants (2015-16).

In the recommendations made by the panel, it was suggested that there should be a regulatory mechanism to see that airfares remain within a reasonable range and also observed that the existing system has not worked.

The committee, in the report today, said it is of the "considered view that some mechanism to cap the maximum fares on every sector is needed".

This comes against the backdrop of rising concerns in various quarters about steep fluctuations in airfares.

Earlier, some Parliamentarians had asked the Civil Aviation Ministry to look into the issues of steep hike in air fares during festival season.

Besides, the panel said the government is taking "too much time to finalise Civil Aviation Authority".

"The committee hopes that the Civil Aviation Authority of India Bill will be placed before Parliament at the earliest so that the proposed Authority can address all the grey areas in the aviation sector," the report said.

Once in place, this Authority would have safety oversight of air transport operators, airport operators and navigation service providers, among others.

In its submission, the Ministry said the Bill is being reviewed in view of comments received from other ministries and departments.