This Article is From Dec 15, 2010

Airlines given a week to cut fares, says Praful Patel

New Delhi: The airlines may have given in to the government's demand for more transparency, and put their fares up on their website, but the battle it seems is far from over.

With spot fares still well above the agreed fareband, Civil Aviation Minister Praful Patel today warned private airlines to cut fares within a week or face Directorate General of Civil Aviation (DGCA) action.

"Airlines are exploiting public over spot fares. DGCA will take action if airlines don't cut fares within a week," the minister told NDTV. (Read: Full transcript of Praful's exclusive interview)

Speaking in the Capital after a meeting with private players on Monday, Patel had emphasised that much more had to be done to protect passenger interests and that the government was by no means satisfied.

"We have spoken to the airlines. In the last 8-10 days after the DGCA's intervention, airlines have certainly come around and demonstrated more transparency in their fare structure. We feel much more needs to be done. We have advised and cautioned the airlines. They must do whatever is necessary in the larger passenger interest...The government is not regulating fares, but we can't be a mute spectator to this astronomical levels," he had said.

Speaking about national carrier Air India, the minister said it has serious management issues and hence needs a serious shake-up.

He also added that Air India equity infusion of Rs 1200 crore may be cleared this week.
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