PSC committee demands tighter grip on airline fares

Discussion on airline fares: In a report tabled by the Parliamentary Standing Committee on Transport, Tourism, and Culture, chaired by YSR Congress MP V Vijaysai Reddy, the committee accuses airlines of exploiting passengers with unfair fare hikes, particularly during peak seasons and holidays.

The report throws light on the current system of self-regulation, calling it demonstrably ineffective. It recommends empowering the Directorate General of Civil Aviation (DGCA) to directly regulate airfares, arguing that the existing Tariff Monitoring Unit, tasked with overseeing fare trends, lacks teeth. 

It also proposes route-specific fare caps and even floats the idea of establishing a separate, quasi-judicial entity to specifically control airfares. The Ministry of Civil Aviation (MoCA) counters that airlines set fares based on demand, following global practices. They defended the existing system, highlighting that airlines offer lower fares for early bookings and justify higher prices during peak periods when seats are scarce.

However, the committee remains unconvinced. They point to instances where Low-Cost Carriers (LCCs) charged more than Full-Service Carriers (FSCs) for the same route and timings, raising concerns about profiteering over passenger welfare. They argue that "reasonable profit" remains undefined, allowing airlines leeway for excessive markups.

This clash between lawmakers and the government reflects a wider debate about balancing market forces with consumer protection in a rapidly growing aviation sector. While airlines highlight the need for flexibility to optimise revenue and stay competitive, concerns about affordability and transparency are gaining traction.

The report has thrown the ball into MoCA's court as they face the pressure to address the committee's concerns and potentially navigate a regulatory overhaul. 

(With PTI inputs)