Airlines want steps to check predatory pricing of tickets

New Delhi: Cash-strapped Indian carriers have sought a regulatory mechanism to prevent predatory pricing of air tickets and asked the government to rationalize taxes on jet fuel and other levies.

Maintaining that the cost levels of the Indian airlines were “probably the highest in the world”, the Federation of Indian Airlines (FIA) said the price of aviation fuel for domestic use was 50 per cent higher in India than global levels.

Besides, airport charges at privatized airports “continue to rise unabated”, the interest costs were “highest in the world” and airspace congestion was forcing airlines to lose millions, it said, adding that Indian carriers were estimated

to post a loss of Rs 3,500 crore in the first half of this fiscal because of these factors.

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In a letter to Civil Aviation Secretary Nasim Zaidi, the FIA, which represents all major Indian carriers including Air India, also referred to predatory pricing or the practice of selling a product or service at very low price to drive competitors out of the market or create barriers for the new entrants.

“It is critical to establish appropriate regulatory mechanism that would prevent malpractices like predatory pricing and capacity dumping in the market which could be detrimental to the interests of the industry as a whole,” FIA Secretary General Anil Baijal said in the letter.

Suggesting the establishment of a statutory mechanism for the purpose, he said the provisions of the Aircraft Rules, 1937, could be considered for taking appropriate action against the defaulters.

PTI