House Panel for Cap on Economy Class Airfares

Published: 30th April 2016 06:36 AM  |   Last Updated: 30th April 2016 06:36 AM   |  A+A-

NEW DELHI: A ceiling for economy class airfares has to be brought in to curb “exhorbitant” air fares during peak tourist seasons, recommmended a parliamentary panel on Friday.

Headed by Trinamool Congress Rajya Sabha MP Kanwar Deep Singh, the panel also recommended that the Aviation Ministry ensure that airlines pass on the benefit of the 50 per cent reduction in jet fuel costs to consumers by slashing tariffs.

Prime Minister Narendra Modi had expressed “concern” last August over predatory pricing by domestic carriers after he reportedly received a representation that airfares were high during the Onam festival celebrated in Kerala.

"The Committee also noticed that the airfares are exorbitant during the peak tourist seasons which are causing hindrance to passenger flow in the country.

"The Committee also recommends that, in view of the predatory charges levied by the airlines during peak times, the Government should fix an upper limit, especially in the economy class of airfares so that there should not be unhealthy practice of raising fares exorbitantly," the Department-Related Parliamentary Standing Committee on Transport, Tourism and Culture said in its report, tabled in Parliament on Friday.

The panel also suggested that the Government make efforts to launch more flights to the Middle East, especially during the summer holidays

The report said that the Committee had received numerous complaints about high air fares and high charges levied by airlines and airports operators, making it very expensive for the air travelers.

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