Civil aviation secretary says regulator has enough powers to force them to reduce their fares.
If airlines continue to cock a snook at the government over high fares, they may well get into some trouble.
In view of the skyrocketing ticket prices, the aviation regulator, the Directorate General of Civil Aviation (DGCA), has been asking airlines to submit a fare slab. But while the airlines want fares calculated distance-wise, the regulator wants it done by category, period, and sector.
If the airlines and the DGCA fail to come to an agreement, the government may consider invoking provisions in Section VI of Aircraft Rules, 1937 which provide for imprisonment for a maximum term of three months or a fine of Rs1 lakh or both.
Clause 29 in Category IV of the penalties section of the Aircraft Rules specifies that, “The doing of any act prohibited by or under any rule, or failure to do any act required to be done by or under any rule, not specified elsewhere in this Schedule” would attract the three month imprisonment or Rs1 lakh fine penalty.
In the current context, this provision could be applied to airlines if they fail to comply with the DGCA directive to bring down fares and make them transparent.
Civil aviation secretary Nasim Zaidi — who laid down charge as DGCA just three days back and is well versed with the regulator’s powers — said that the aviation regulator had “enough” powers to deal with the current impasse on fares.
When a senior official in the ministry was asked today if the government was thinking of invoking Schedule VI penalties for airlines on the fare issue, he said, “The DGCA would be able to answer that. I have no information.”
When contacted by DNA, the newly appointed DGCA, E Bharatbhushan, did not immediately answer queries on penalties from DNA.
But emerging from a meeting with officials of the three budget carriers (SpiceJet, IndiGo and Go Air) this evening, Bharatbhushan did say that his discussions with the airlines centred on generating more transparency in fares.
“The airlines themselves did not come with any formula. We told them to state clearly the percentage of bucket seats [non-economy class seats] saved for the last, and in general, to bring in more transparency. The full service carriers will meet us on Monday and only after that we will decide on what to do”.
Most airlines have been violently opposed to the government’s move to regulate fares, saying the government does not run airline businesses and hence does not comprehend margins, fares and even the smallest detail of the business.
While some airlines have pointed out lack of government action over bringing down fuel costs and removing airport operators’ monopolies, others have said that if the government was so keen on regulating fares, it should also come forward and buy airlines’ equity!
The airlines have also been at pains to explain that high fares are only on spot buying — on the day of travel or 24 hours in advance — and that fares remain under control on pre-bookings.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}