February 7, 2017 8:20:05 pm
Amid concerns over sudden spike in airfares in some sectors, Government today said in the Rajya Sabha that there has been no anti-competitive or predatory pricing behaviour by the airlines. Responding to queries with regard to recent surge in air ticket prices to and fro Srinagar due to inclement weather, Minister of State for Civil Aviation Jayant Sinha said air ticket prices are competitive and based on market economy.
“Airline market is based on market economy and there is lot of competition,” he said.
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Citing analysis of available data, Sinha said the prices being set in the airline market are competitive and “no violation” has been observed which can be called as anti-competitive behaviour.
He said research and analysis of airfares are done to to check predatory pricing.
Further, Sinha said whether it is the Civil Aviation Ministry or Competition Commission of India (CCI), they aim to ensure that there is no anti-competitive behaviour.
About regional air connectivity scheme, Sinha said the bidding in this regard has been completed and the successful bidders would be announced in the next few days.
Under the scheme, also known as UDAN (Ude Desh Ke Aam Naagrik), the Ministry is looking to connect unserved and under-served airports whereby the participating airlines would be extended various incentives.
For one-hour flights under this scheme, the fare would be capped at Rs 2,500.
To a question on whether airports would have facilities for people from all communities to pray, Sinha said the instruction from the Ministry is that there should be a “quite room” where people from every community can pray.
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