Air passengers can hope for fair price

DGCA says airfares will be monitored

sweta-ranjan

Sweta Ranjan | November 17, 2011



Traveling during festive season is not going to be an expensive affair anymore. The aviation watchdog directorate general of civil aviation (DGCA) assured this on Thursday in the backdrop of plenary session of India- US Aviation Summit to sign a bilateral aviation safety agreement.

It was expected that the trouble in Kingfisher Airlines would generate good business for its competitors but the DGCA has stepped in to monitor the air fare.

DGCA chief E K Bharat Bhushan said that his department will monitor the hike in airfares by other airlines following the crisis in Kingfisher Airlines which led to cancellation of 149 flights.

According to sources the aviation ministry might soon come up with a regulator to fix up fare for airlines.

Bhushan also said that the Kingfisher Airline can not violate the rule to fly on unprofitable sectors. According to DGCA, it is the government that will take a call on Kingfisher deciding to end all unprofitable routes.

The aviation regulator DGCA had sent a show-cause notice to Kingfisher Airlines after it cancelled its flights. The DGCA had asked the airline to show cause the reason for not taking the regulator’s prior approval for curtailing the flight schedules. As per rule 140 (A) of the aircraft rules an airline has to take DGCA’s approval before starting a new route or discontinuing a flight.

Civil aviation min insists on a 24 % cap for foreign airlines

Regarding FDI in the aviation sector Dr Nasim Zaidi, secretary, Civil Aviation Ministry said that the ministry has civil aviation ministry has agreed to foreign airlines picking up stakes in Indian carriers, but is insisting on a 24 percent cap.

Under the current rules, up to 49 percent FDI is allowed in aviation companies by any foreign company which is not in aviation business, but foreign airlines are not allowed to invest.

However, Department of Industrial Policy and Promotion (DIPP) feels that the 24 percent limit will not be able to benefit the sector as it will not let investor to be involved in the functioning of the company.

Investors with more than 25 percent stake can have a say in important decisions.

The DIPP is pushing for at least a 26 percent limit and the Indian industry is pressing for a higher limit of up to 49%.

The decision on this likely to come within two weeks.

Comments

 

Other News

How social media is reshaping elections

Since Brazil’s return to direct presidential elections in 1985, no candidate who finished second in the first round of polling had ever won the presidency. Luiz Inácio Lula da Silva, now 81, has just done it. What explains the comeback, and what changed in Brazilian politics to make it possi

Cabinet approves Dearness Allowance, Dearness Relief

The union cabinet chaired by prime minister Narendra Modi on Wednesday approved the release of an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2026 representing an increase of 3% over the existing rates of 6

Cyclone Arnab strikes Andhra as warming oceans amplify storm risks

Cyclone Arnab made landfall along the Andhra Pradesh and Yanam coasts in the early hours of Wednesday as a very severe cyclonic storm, with maximum sustained wind speeds of 125–135 kmph and gusts reaching 150 kmph. Its rapid intensification has raised concerns about how warmer oceans, global warmin

Counting matters but which ones?

The first instinct of public policy is to count. Its harder task is to count what counts. We have become remarkably good at measuring the reach of the welfare state vis-à-vis beneficiaries covered, rupees transferred, houses built, connections installed and services delivered. But some of the most

Inching closer to a trade deal with America

The cooperation between India and the United States goes back quite a time. We need to relegate that era to the backburner when Pandit Jawaharlal Nehru visited US in the times of president Dwight Eisenhower and called the American let-off of 10 million dollars in defence aid to Pakistan as a “gun w

Manch vs Musk: Forty people and a foreign billionaire

About forty people walked the roundabout on Teen Murti Marg to the gate of Chanakyapuri police station, a distance you could cover in under a minute, on Friday to protest against Elon Musk’s Starlink. The walk was called by the Swadeshi Jagaran Manch. Nobody joined them on the way, and nobody seeme

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter