Civil Aviation Minister orders setting up a mechanism to regularly Monitor Airfares

Union Minister for Civil Aviation Hardeep Singh Puri has ordered setting up a mechanism to regularly monitor airfares in the country. With the setting up of new mechanism, the airfares will now be regularly monitored by Union Ministry of Civil Aviation and Directorate General of Civil Aviation (DGCA).

Key Highlights

The Aviation Ministry move to set up a mechanism in Civil Aviation Ministry and Directorate General of Civil Aviation (DGCA) to monitor air fares on a regular basis is to keep an eye on how airlines pricing is working.

With monitoring of airfares on an ongoing basis, the Ministry can get some learning from that and then discuss it with airlines.

However, Aviation Ministry clarified that the government currently does not have any intention to regularise the fares.

Centre is also concerned about higher taxes on aviation turbine fuel (ATF), and has also requested state governments to reduce excise duty on it.

Besides this the aviation ministry, had also raised concern over pricing war between airlines that analysts believe is primary reason for losses of airline industry.

Month: Current Affairs - September, 2019