December 3, 2010 5:07 PM

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DGCA will exercise its powers against airlines if they do not lower fares

Civil Aviation Minister Praful Patel today said Directorate General of Civil Aviation (DGCA), will exercise its powers in taking action against airlines if they do not lower fares. Giving a stern warning to the airlines, Civil Aviation Minister Praful Patel said government may also involve Competition Commission to deal with errant airlines after air carriers proposed a massive hike in fares. Addressing a press conference in New Delhi, the Minister said, an Economic Advisory Council headed by Civil Aviation Secretary Nasim Zaidi will be appointed to advise Directorate General of Civil Aviation (DGCA), on all issues relating to economic regulations including airfares. Mr Patel said, the new council will be meeting on December 10th. He said DGCA took note of rising fare and took preliminary action. The domestic airlines have proposed to hike air fares for the first time based on distance-based slabs. Mr Patel said if there is something lacking necessary correction will be made. The domestic airlines came out with the proposal after they were asked by the DGCA to submit the planned price bands on various sectors after some of them resorted to steep hike in airfares even during the non-peak season.

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