Government to soon address predatory pricing by airlines

Prime Minister Narendra Modi will address the issue of predatory pricing by the domestic carriers soon. Modi expressed "concern" over the practice which is giving a "bad" name to the industry, Union Minister Mahesh Sharma said today.

"It (predatory pricing) is a concern of a majority of Parliamentarians, including the Prime Minister, and needs to be addressed," Sharma, Minister of State for Civil Aviation, said here on the sidelines of an industry event, organised by the Assocham in association with the Civil Aviation Ministry.

He added that the airlines need to reduce fares and not hike them particularly when it comes to emergency travel like in medical emergency.

There could be three approaches to prevent predatory pricing ways, Sharma said, adding, "We will take the airlines into confidence and tell them that the practice (of predatory pricing) is giving a bad name to the industry."

A mechanism can also be there through the Directorate General of Civil Aviation (DGCA) or through national carrier Air India to deal with the issue, he added.

Concerns have been expressed in various quarters, including by Parliamentarians, over drastic fluctuations in air fares.

In May, a group of Parliamentarians, led by BJP leader Kirit Somaiya, had met Competition Commission of India Chairman Ashok Chawla and lodged a complaint against carriers on the issue of air ticket pricing.

The ministry had last year circulated a note for internal discussion wherein it suggested steps to cap economy class air fares at minimum and maximum levels.

(Image credits: Indiatimes)