Airfare, in normal circumstances, is market driven and not regulated by the Govt: DGCA

July 21: Under the provision of sub-rule (2) of Rule 135 of Aircraft Rules, 1937, the airlines are required to display the fare structures on their websites. Details of existing airfares are available on the website of the respective airlines. The Government has received a few references regarding airfares in the Gulf sector from Members of Parliament and from the Government of Kerala.

With the repeal of Air Corporations Act in March, 1994, tariff fixation has been deregulated and airlines are free to fix reasonable tariffs under the provisions of sub-rule (1) of Rule 135 of Aircraft Rules, 1937 having regard to all relevant factors, including the cost of operation, characteristics of service, reasonable profit and the generally prevailing tariff.

The airfare, in normal circumstances, is market driven and is neither established nor regulated by the Government. Air ticket prices generally vary depending upon the market forces. Airline pricing runs in multiple levels {buckets or Reservation Booking Designator (RBDs)} which are in line with the practice being followed globally. Due to dynamic fare pricing, the tickets bought in advance are much cheaper than those purchased near the date of travel.

The Directorate General of Civil Aviation (DGCA) is the safety regulatory authority for civil aviation sector. Under sub-rule (4) of Rule 135 of Aircraft Rules, 1937, where the DGCA is satisfied that any airline has established excessive or predatory tariff under sub-rule (1) or has indulged in oligopolistic practice, the DGCA may, by order, issue directions to such airline.