Amid concerns over soaring fares, a parliamentary panel proposed capping airfares on specific routes and setting up a separate entity to control airfares.

After considering the Civil Aviation Ministry’s reply on the issue of air ticket prices, the committee said that self-regulation of air ticket prices by airlines has not yet come into play.

The department-linked Parliamentary Standing Committee on Transport, Tourism and Culture on Thursday tabled a report on the action taken by the government on its recommendations/opinions on the air ticket pricing issue.

In its report, the committee stated that it had encountered many cases of abnormal increases in ticket prices, especially during the holiday season, and believed that the self-regulation of airlines was not effective and recommended the establishment of a mechanism. DGCA has the power to regulate aviation tariffs.

Currently, air ticket prices are neither set nor regulated by the government.

The panel also reiterated its recommendations and urged the ministry to explore the feasibility of setting up an independent entity with quasi-judicial powers to exercise control over air ticket fees charged by airlines.

Furthermore, the report said the committee believed that fare caps on specific routes could be reviewed, taking into account the interests of airlines and customers.

“The report also recommends that in order to protect the commercial interests of airlines, the feasibility of revising the cap during peak seasons/festival periods could be studied with prior notification,” the report added.

The committee believes that business interests such as revenue management and shareholder value maximization determine the pricing of air tickets, while passenger interests play no role in air ticket pricing.

“It is, therefore, strongly recommended that the Ministry of Transport put in place a mechanism to ensure compliance with Rule 13(1) of the Aircraft Rules, 1937, thereby ensuring that the increase in air ticket prices is controlled.”

“The term ‘reasonable profits’ is again used without a clear definition or specific criteria, making it a subjective measure,” the report states.

The committee also said it still believed the policy on price differences for seats on the same flight needed to be reviewed as it violated the principle of fairness.

The committee said claims that unbundling could reduce the cost of air travel for consumers who only want basic products needed to be reviewed, adding that while such an approach might reduce costs for some passengers, it could also lead to Costs increase for other passengers. End up paying for various add-ons.

(This story has not been edited by News18 staff and is published from associated news agency – PTI)