’DGCA has no authority to control airfares’


PTI, 27-03-2011 15:54:53


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Hyderabad: Airfares are determined by market forces and the Directorate General of Civil Aviation (DGCA) has no authority to control them, a top official has said.

 

AI

 

Speaking at an event here, DGCA director general Bharat Bhushan also said that capacity constraints at major airports, coupled with increased Air Turbine Fuel (ATF) costs, are putting pressure on airline companies.

"I am afraid tariff is a function of demand and supply and unless there is an extraordinary hike in fares, we will not be able to tell them that this is wrong. We have persuasive powers. But we have no authority to control fares," Bhushan told mediapersons on the sidelines of the GMR Aviation Security Summit, which concluded here Saturday.

He said the DGCA has an Aviation Tariff Monitoring Cell, through which it brought in a system of requiring the airlines to submit their fare structures. The system was put in place when airfares went up sharply last Diwali.

Following a large number of complaints from passengers of excessive fare at the time, the aviation regulator had directed the carriers to ensure transparency in ticket-pricing by providing route and date-wise fare details.

"During the last year itself, the ATF prices went up by 45 to 50 percent. So this has a bearing on tariff," he said.

Earlier, in his address at the summit, Bhushan blamed capacity constraints at major airports for wastage of fuel and impacting the financial position of airlines.

"Presently, capacity constraint is being experienced at major airports, which is leading to wastage of fuel. An aircraft hovering for an additional half an hour due to delay in landing permission consumes about 25 to 30 percent extra fuel, thereby increasing the operational cost of the airline," he said.

Flight delays caused due to the congestion not only cause inconvenience to passengers, but also result in wastage of fuel and man hours and translate into huge additional costs, he observed.

Talking about domestic passenger growth, he said the market is expected to grow at around 10 per cent annually to reach a level of 150 to 180 million passengers by 2020. Last year, the industry crossed 50 million fliers mark.

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