The civil aviation ministry is considering a proposal to include in the civil aviation requirements, penalties for airlines indulging in cartelisation of fares.The ministry is formulating a new draft for the proposed Civil Aviation Authority, which is set to replace the Directorate General of Civil Aviation, while the CAA Act will replace the current Aircrafts Act of 1934.
"We would consider a proposal on introducing penalties or punishments in the CAA for airlines involved in cartelisation of fares in the next meeting of the committee," said a senior ministry official on the condition of anonymity. After Diwali in November 2010, airlines resorted to raising spot fares by up to 300 per cent on various routes. The Competition Commission of India is also investigating the matter.
The committee drafting the CAR, which is set to be formulated in 24 months, includes members from all sections across the sector, including representatives from the International Air Transport Association, the Centre for Asia Pacific Aviation and representatives from airlines and airports.
In cases of disputes on fares between consumers
and airlines, the ministry also wants the regulator to function as an arbitrator.
The rules would also make it compulsory for airlines to provide the regulator with information on the procedures followed to fix fares and the number of buckets or seats alloted under various fare tags. It is also contemplating asking airlines to issue waitlisted tickets to ensure that passengers are not offloaded.
In order to make sure the CAA functions as an independent regulator, the government has come up with ways to provide more financial and human resource autonomy to the CAA.
The CAA will not need any support from the government, since a share of Rs. 12, charged on every air ticket sold in the country, will flow into its resources.
The DGCA, headed by an Indian Administrative Service officer, lacks such autonomy and is funded by the government. Unlike the DGCA, the CAA will be headed by an independent person and will have its own HR policy.
Currently, the Union Public Service Commission is responsible for recruitment in the DGCA.
