Airlines reply to regulator on fare hikeFebruary 14th, 2009 - 10:10 pm ICT by IANS
New Delhi, Feb 14 (IANS) The aviation regulator has got explanation letters from six airlines on why they withdrew promotional fares and hiked base tariff, a government official said here Saturday. He refused to divulge details of the letters.
“Six airlines have reported back to the DGCA (Directorate General of Civil Aviation) on fare hike and also on fare structure. Other airlines have also assured that they would forward their reply,” a civil aviation ministry spokesperson said.
The official, refusing to share the content of the letters, said the DGCA would take a decision on the issue in consultation with the government.
Earlier in the day, state-run Air India and Kingfisher Airlines also said that they had said sent replies to the aviation regulator. They also refused to divulge details of their replies.
Earlier, the DGCA had asked domestic carriers to explain their decision to withdraw promotional fares and hike base tariff at the same time and warned them against “cartelisation”.
“The DGCA is not aware of the reasons for this, specifically at a time when the ATF (aviation turbine fuel) prices, which were effective from February 1, are at the level that they were in 2005,” the regulator said in a statement Thursday.
The matter also invited criticism from Civil Aviation Minister Praful Patel who warned airlines against “cartelisation”.