New Delhi, December 2
Domestic airlines may have proposed a massive hike in air fares, but they are not likely to have their way.

The Directorate General of Civil Aviation (DGCA) is unlikely to give its nod to airlines’ proposal. In addition, the government plans to approach the Competition Commission of India to ensure there is no cartelisation among airlines.

The government has asked national carrier Air India to provide competitive and transparent airfares to passengers.

Civil Aviation Minister Praful Patel said: “Passenger interests will be protected at all costs. If need be, we will approach the Competition Commission. Finally, Air India will lead the way by offering competitive and transparent fares”.

Domestic airlines came out with these proposals after they were asked by the DGCA to submit the planned price bands on various sectors following the hike in airfares even during the non-peak season. Airlines are believed to have proposed one-way fares between Rs 10,500 and Rs 40,000 for distances of less than 750 km and more than 1,400 km.

Sources say the DGCA is likely to shoot down the proposed price bands and may ask the airlines to rework them keeping the interests of passengers in mind.

According to the proposed fare bands, calculated after taking distance into account, an air passenger may have to pay Rs 10,500 for a flight from Delhi to Chandigarh and a whopping Rs 40,000 on longer routes like Delhi-Bangalore or Delhi-Kolkata.

“DGCA will not allow any predatory or exorbitant pricing...If there is something lacking we will make necessary correction. We will not allow airlines to charge exorbitantly. We will not let them take advantage of a situation," Patel has said. The airfares have been quoted for four distance slabs of less than 750 km, 750-1,000 km, 1,000-1,400 km and beyond 1,400 km. The fares proposed by airlines on the 750-1,000 km slab ranged between Rs 14,550 and Rs 19,500, while the high distance slab had proposed fares ranging between Rs 22,000 and Rs 40,000.

IndiGo, SpiceJet, Jet Airways, JetLite, GoAir and Air India (Domestic) have all given their proposals on this basis, Kingfisher Airline has been asked by DGCA to rework its proposal as it submitted fares on the basis of two slabs. Sending a strong signal to domestic airlines over the sudden spurt in airfares, the ministry recently warned them of action if they continued with ‘predatory’ pricing. Airfares have been almost 30 to 40 per cent high on several major domestic routes even during the non-peak season.