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Proposal to ensure air ticket for Rs 2,500 for 1-hr journeys

New Delhi

There is a proposal to ensure that only Rs 2,500 is charged per ticket for one-hour flights, government told the Lok Sabha Tuesday amid concerns expressed by members over exorbitant airfares.

The government also said it will hold consultations with the airlines to explore the possibility of curbing the menace of charging exorbitant airfares during emergency situations.

"The Ministry will commence the process of consultations with stakeholders, including airlines, to explore possibilities ... of containing fares," Civil Aviation Minister Ashok Gajapathi Raju said while replying to a debate on Demand for Grants for the Ministries of Civil Aviation and Tourism which was approved by the House later.

During the debate, members voiced concern over exorbitant airfares during emergency situations like unprecedented floods in Chennai and Srinagar and the recent Jat agitation.

Raju said that during the Chennai floods, the airlines did help the government to evacuate stranded people by operating flights from Arakonam air base to Bengaluru and Hyderabad.

Minister of State for Civil Aviation Mahesh Sharma said the government is working on strengthening regional air connectivity and in this regard, there is a proposal to ensure that only Rs 2,500 per ticket is charged for one-hour flights.

Raju said a comparative study undertaken by the Ministry for January-March 2013 and the same period during 2016 showed a reduction of 18.10 per cent in airfares.

This shows that the airlines are passing the benefits from lower ATF (Aviation Turbine Fuel) costs to the passengers, he added. In recent times, concerns have been expressed in various quarters about rising airfares despite fall in fuel prices, which account for over 40 per cent of a carrier's total operating costs.

On the purchase of 68 aircraft by Air India during the UPA regime, Raju said the matter is before the Public Accounts Committee (PAC) which has taken oral evidence and the matter is going to come up before the panel this month.

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Banks not passing on RBI policy rate benefits: Cong in RS

PTI
Published May 4, 2016, 12:00 AM IST
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New Delhi A Congress member in Rajya Sabha today said the banks were doing "injustice" to their customers by not passing the entire reduction in key policy rate by the RBI to their customers and sought steps to ensure it. Raising the issue during the Zero Hour, Congress member Palvai Govardhan Reddy said the RBI has reduced the repo rate by 150 basis, but banks have only passed on the benefit to the consumers in the range of 60-70 basis points. "Banks are not passing on the…

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