According to the report tabled on January 4, the pricing mechanisms applicable in the "developed countries may not be suitable for India".
The Parliamentary Standing Committee on Friday has suggested the Union government to fix limits for airline tickets and cancellation charges. The recommendations were made by the Parliamentary Standing Committee's 256th report on "Issues related to improving consumers' satisfaction of airlines".
According to the report tabled on January 4, the pricing mechanisms applicable in the "developed countries may not be suitable for India".
It noted that even after a 50 per cent reduction of the ATF (aviation turbine fuel) prices, the airlines had not passed on the benefit of reduction in ATF prices to the consumers.
"The Committee notes that around festivals and for bookings made closer to the date of travel, some airlines are charging more than 10 times of the advance booking fare. The Committee observes that this is arbitrary. A deregulatory environment does not mean unlimited freedom of exploitation," the report said.
However, after the Parliamentary Standing Committee pulled up Airlines for exorbitant fares in its report and raised concerns over rude behaviour by their staff, Minister of State for Civil Aviation, Jayant Sinha said that the airlines are running according to the global practices.
"We have been looking into the matter. We are also investigating as to how the airline pricing taking place. And we have observed that the airlines are doing nothing new and are running as per the global practices. They are doing it according to the global standards. If anyone thinks that the price is being run high and on a predatory manner then he can lodge a complaints in DCG and it will be looked into," he said.
Sinha further said that the airline pricing in India is very low and nowhere in the world people get such cheap air tickets.
Speaking on the behaviors of the airline staff, Sinha added, "We are working on the behaviors of the staff members. All the matter has been taken seriously. As far as cancellation price is concerned we are very clear that it should not be more than the base fare and surcharge fare."
Echoing similar sentiments, Union Minister for Civil Aviation Ashok Gajapathi Raju said that the issue raised by the Parliamentary Standing Committee will be looked into.
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 "Set price limit on airline tickets, parliamentary panel tells government")
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