The civil aviation ministry has pulled up airline companies for an astronomical rise in fares. In an interview with Sanjay Jog, Civil Aviation Minister Praful patel said his ministry and the Director General of Civil Aviation (DGCA) had the power to take action against errant airlines. He expects airlines to immediately take corrective measures. Edited excerpts:
What according to you are the major reasons for this sudden spurt in air fares?
I want to reiterate that such fares are unjustified. However, the demand for air travel has been rapidly increasing but there are supply constraints. During the mismatch between demand and supply, airlines raised fares.
Despite your call, airlines seem to be reluctant to cut fares. Does the civil aviation ministry or DGCA lack enough regulatory powers?
I should make our stand quite clear that the ministry has enough power under Rule 135 of Aircraft Rules, 1937, to take action against the errant airlines. At the same time, DGCA has enough residual powers to take corrective actions.
Civil aviation experts blame the ministry for not giving new licences over the years, which led to the present situation. Do you buy this argument?
This is not true. The key factor is not the number of airlines but the number of planes. There are seven airlines and there is no lack of competition in India. In the global meltdown, the civil aviation industry also suffered badly. During 2008-09, some airlines reduced capacity and also the number of planes as they were bleeding heavily. The civil aviation industry is reviving during the ongoing global recovery. This led to a sudden spurt in demand. However, airlines will take time to ramp up the capacity as it needs adequate planes, pilots and engineering support. There are serious constraints in availability of aircraft in the international market due to a spurt in demand worldwide. Still, airlines are quite optimistic about the future. But airlines resorting to arbitrary fare hike is not justifiable.
What will be the combination and the role of proposed economic advisory council announced by you?
The advisory council chaired by the civil aviation secretary would look into the issue and make recommendations to the ministry in this regard. It will have representation from the civil aviation industry, consumers, legal fraternity and DGCA and have all shades of opinion, basically to protect the interest of both the civil aviation industry and the passengers. Interests of passengers are of paramount importance but at the same time the industry should be financially healthy.