Praful: Hikes in air fares can't be justified

New Delhi: The government has found airlines are trying "to take undue advantage" of passengers by increasing their fares, said Civil Aviation Minister Praful Patel.

While stating that he does not expect airlines "to act contrary to the spirit of liberalization," Patel said that the new fares suggested by airlines cannot be justified. He also attacked the giant hikes already introduced by airlines in the last few weeks- he said the government has "taken serious notice" of this.

All airlines have been summoned to explain their stand to the Directorate General of Civil Aviation (DGCA).

Earlier this week, airlines submitted a proposal that listed air fares -based on the distance of journeys- in four slabs.  Patel has rejected this formula.

He also said that a new Economic Advisory Council has been set up to oversee fares and economic regulations.  Civil Aviation Secretary Nasim Zaidi will head the council which will meet for the first time on Friday, December 10. It will include the CEOs of airlines, representatives of consumer forums, and members of the DGCA.

Patel said that airlines are entitled to bucket pricing - raising fares closer to the date of travel, so a passenger who books later pays more for a ticket.   But he also said he'd like to see a fair balance between the needs and rights of passengers and airlines. 

What airlines want 

Earlier this week, airlines suggested four slabs for air fares, based on distance.

The one-way fares proposed are:

• Rs. 10,500 for distances less that 750 km (e.g Delhi-Chandigarh, Chennai-Coimbatore)

• Rs. 14,550 to Rs. 19,500 for distances between 750-1,000 km

• Rs. 17,000 to Rs. 25,000 for distances between 1,000-1,400 km

• Rs. 22,000 to 40,000 for distances of more than 1,400 km (e.g. Delhi-Bangalore, Delhi, Kolkata)