December 4, 2010 8:42 AM

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Stop erratic rate hike or face action: Govt to airlines

The Government warns of strict action against airlines if they do not stop arbitrary hike in air fares. Civil Aviation Minister Praful Patel said, Directorate General of Civil Aviation, DGCA will take action against those airlines which do not lower air fares. He said the Government might also involve Competition Commission to deal with errant airlines. Addressing a press conference in New Delhi, the Minister said an Economic Advisory Council headed by Civil Aviation Secretary Nasim Zaidi would be appointed to advise Directorate General of Civil Aviation on all issues relating to economic regulations, including airfares. Domestic airlines have proposed a massive hike in air fares for the first time based on distance-based slabs. They 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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