Directorate General Civil Aviation (DGCA) has set up a Tariff Monitoring Unit to monitor airfares on certain routes selected on random basis to ensure that the airlines do not charge airfares outside the range declared by them. An analysis has shown that the airfares remained well within the fare bucket uploaded by the airlines on their respective websites.
Air fares are not regulated by the government. Under the provision of Sub Rule (1) of Rule 135, Aircraft Rules 1937, airlines are free to fix reasonable tariff having regard to all relevant factors, including the cost of operation, characteristics of services, reasonable profit and the generally prevailing tariff. Air fare fixed by the airlines is published on their respective website under the provision of of Sub Rule (2) of Rule 135, Aircraft Rules 1937. Airlines remain compliant to the regulatory provision of Rule -135 as long as the fare charged by them does not exceed the fare established and displayed on their website.
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