11 December,2010 07:19 AM IST | | Bipin Kumar Singh
Experts say a stronger regulatory body, on the lines of TRAI, will help solve airfare and other problems plaguing Aviation sector
Even as the Directorate General of Civil Aviation (DGCA) and Civil Aviation Ministry's strict action on exorbitant airfares has led to a reduction in prices, aviation experts are calling for a long-term solution to the problem.
The aviation sector continues to decide fares for itself despite the existence of the Civil Aviation Economic Advisory Council
They recommend the setting up of a stronger regulatory body, onu00a0u00a0 the lines of the Telecom Regulatory Authority of India (TRAI), for the aviation sector to tackle this and other problems plaguing the industry.
"TRAI has done exemplary work for the telecom sector and has managed to tread the fine line between keeping both consumer and companies' interest in mind.
The aviation sector requires a strong aviation regulatory body on those lines. The existing bodies are just not powerful enough to deal with the private airlines," said Sudhakar Reddy, president, Air Passengers Association of India.
Captain M Ranganathan, former Air India captain and a top aviation expert, believes the DGCA does have the power to tackle these problems but often lacks the will to do so.
He has also taken strong exception to private airlines' repeated calls for the government to step back and to allow market forces to determine airfares.
"DGCA does have the power to enforce strong regulation on the airlines the question is whether it has the will or not.
The airlines, which are now saying that the fares should be decided by the market and not by the government, should explain why they need the help of the government for bank guarantees and for purchasing fuel.
How can they ignore the role of the same government when it comes to fixing airfares?" asked Ranganathan.
He pointed out that the railway ministry decides the railway fares and the transport ministry of each state decides the fares of taxi and bus services but the aviation sector continues to decide fares for itself despite having a Civil Aviation Economic Advisory Council.
Former DGCA chief H S Khola, however, said having a new regulatory body is not the right solution.
"This system has been working for more than ten years and just changing it won't bring about the desired results.
The solution for the current impasse lies more in the induction of new low-cost carriers and expansion of the fleet," he said.
Fare reduction
Meanwhile, a travel agency from Andheri confirmed that prices have seen a drop of nearly 30-35 per cent since the DGCA and the ministry decided to crackdown on exorbitant fares.
"Prices have stabilised. Flight tickets to Delhi, Bangalore, Jaipur, Lucknow, Patna, Hyderabad, Kolkata and Goa cost much less than they did a few days back," said a travel agent.
MiD DAY Impact
MiD DAY was the first to report on airfares touching an all-time high on November 13.
MiD Day revisited the fares on November 23 and found that they were still the same.u00a0 After the reports, the DGCA issued a circular to all airlines to ensure transparency in fares.
The circular asked airlines to furnish a copy of the route-wise tariff across its network in various fare categories, in the manner it is offered in the market, to DGCA on the first day of every calendar month.
