The Hindu Business Line : DGCA asks airlines to explain withdrawal of low-fare schemes

NEW DELHI: With suspicions towards cartelisation among airlines emerging after some of them withdrew their low-end air fares, DGCA has directed all scheduled domestic carriers to give details and justification for their decision to “simultaneously'' rais e the prices.

The move came after Civil Aviation Minister Praful Patel warned it was time to act against any move towards cartelisation.

“We will keep a watch and take strict action in any such case,'' Mr Patel, who had earlier asked the carriers to reduce airfares after a fall in jet fuel prices, said. The Directorate General of Civil Aviation (DGCA) shot off letters to all scheduled dom estic carriers asking for information regarding the recent hike and transparency in airfare advertising, saying it should be furnished by Saturday.

The regulatory body said it had been brought to its notice that the carriers had “increased their airfares simultaneously in the second week of February'' and the DGCA was “not aware of the reasons for this simultaneous hike, specifically at a time when the ATF prices, effective February 1, 2009, are at the level that they were in 2005.''

DGCA felt that “there appeared to be no rationale for increasing the airfares,'' an official spokesperson said. - PTI

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