Air fares are not fixed by the Government as they are determined by the airline based on interplay of market forces. Airlines are free to fix reasonable tariff under the provision of Sub rule (1) of Rule 135, Aircraft Rules 1937 having regard to all relevant factors, including the cost of operation, characteristic of service, reasonable profit and the generally prevailing tariff. Scheduled airlines offer different fare buckets for each flight. The airline pricing runs into multiple levels buckets or Reservation Booking Designator (RBD) which are in line with the practice followed globally.
However, in order to prevent excessive charging and sudden surges in airfares and to promote transparency by scheduled domestic airlines, Directorate General of Civil Aviation (DGCA) has issued Air Transport Circular 2 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.
DGCA has 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 random analysis has shown that the airfares remained well within the fare bucket uploaded by the airlines on the respective websites.
This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply to a question in the Rajya Sabha today (15 December, 2015).
However, in order to prevent excessive charging and sudden surges in airfares and to promote transparency by scheduled domestic airlines, Directorate General of Civil Aviation (DGCA) has issued Air Transport Circular 2 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.
DGCA has 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 random analysis has shown that the airfares remained well within the fare bucket uploaded by the airlines on the respective websites.
This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply to a question in the Rajya Sabha today (15 December, 2015).
Courtesy: pib.nic.in
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