Aviation ministry to set up mechanism to monitor airfares

In the meeting, airlines had raised concerns about the sustainability of operations due to predatory pricing on several routes and the government had also asked the airlines to keep the sustainability of operations in mind while setting fares, sources had said after the meeting.

Puri reiterated that the mechanism will only be monitoring in nature and not regulatory.

"If I put a ceiling, then airlines will sell at the highest point..we have to be careful if there is predatory pricing or high pricing..have ordered to set up a mechanism in aviation ministry, DGCA which will monitor airlines pricing on regular basis..setting up monitoring committee not regulating," Puri added.

While it is a deregulated market but then it is a problem when low-cost carriers compete with each other and bring each other down, Puri said.

"We are only inviting ideas. It is only to monitor on an ongoing basis how airlines pricing is working and if we can get some learning from that and then discuss with airlines. When you are in the dynamic sector then obviously your interest is to survive today and tomorrow but you also have to think about the day after tomorrow," Puri said.