Parliamentary panel calls for review of airfare policy amidst soaring prices

The Committee recommends that a mechanism should be put in place by the Ministry of Civil Aviation in coordination with the Ministry of Tourism and airline companies to regularly monitor the flight booking portals/ aggregators so that they do not indulge in unscrupulous practices by publishing incorrect information under the guise of selling “last 16 seats”.

In such cases, the Committee recommends that the Ministry should consider issuing necessary guidelines to Airlines to direct these portals/apps to not publish such incorrect information and create an avoidable panic situation amongst the public. The Committee also recommends setting up of a grievance redressal mechanism to deal with such complaints.

“The Committee is of the opinion that a balance has to be maintained between the commercial interests of the airlines as well as the interests of the passengers. The Committee notes the replies received from various airlines wherein they have informed that none of these airlines are displaying misleading information on their websites and they are selling tickets as per the practice being followed worldwide. The Committee also notes the reply of the Ministry stating that DGCA has not received any such complaints substantiating that airlines are misleading the public with incorrect information. It, however, notes the reply of an airline stating that sometimes the online flight booking portals may show fares which are more than the fares fixed by the airlines,” the report reads.

Speaking on the bankruptcy of GoFirst Airlines, the committee noted that the sudden withdrawal of around 200 flights per day by GoFirst has led to a rush for ticket cancellations by flyers, leading to an increase in bookings of other airlines. This sudden spike in demand has subsequently resulted in a sharp surge in airfares.

“Committee notes that even the Directorate General of Civil Aviation was not made aware by GoFirst about its plan to suspend services, which amounts to a violation of applicable rules. The Committee, therefore, recommends that the Ministry of Civil Aviation and DGCA should intervene, take cognizance of this grave situation and issue necessary guidelines to the other airlines to keep a tab on the affected operations and airfares. The Committee also recommends that the Ministry should look into the possibility of developing contingency plans to deal with such situations, arising due to the sudden exit of any airline in the future,” the report added.

Highlighting the issues related to the supply of Pratt and Whitney engines to Indian aircraft, the committee noted that aircraft with and Whitney engines were grounded due to lack of spare parts leading to incurring of losses.

“The Committee would like to know whether there are any provisions to seek damages from the said engine manufacture and if so, the details of action taken by the airlines as well as the Ministry in this regard to avoid the recurrence of such a problem in future,” the report added.