Civil aviation minister directs setting up mechanism to monitor airfare

Civil Aviation Minister said that they have set up a mechanism to monitor airfares on a daily basis. He clarifies that the government does not intend to interfere in the pricing mechanism of the airlines.

New Delhi (India): Civil Aviation Minister Hardeep Singh Puri said that he has ordered setting up a mechanism to regularly monitor airfares in the country.

He, however, said that the government currently does not have any intention to regularise the fares.

"I have ordered for setting up a mechanism in the Civil Aviation Ministry and the DGCA (Directorate General of Civil Aviation) to monitor airfares on a regular basis. We will use this data (obtained) to discuss with them (airlines)," the minister said.

Asked if the government will regularise airfares, Puri said, "It is basically to monitor on an ongoing basis how airlines pricing is working. If we can get a lesson from that, we will have a discussion with the CEOs of airlines."

Puri said the Centre is also concerned about higher taxes on aviation turbine fuel, adding he has requested the state governments to reduce excise duty on it.

The minister welcomed finance minister Nirmala Sitharaman announcement over a cut on the corporate tax rate for domestic companies that do not avail of any tax incentive to 22%.

He added that the aviation sector will benefit from this decision and will drive growth in the country.

"There are higher taxes on airlines turbine fuel. I am in touch with Union Finance Minister Nirmala Sitharaman on how excise duty can be reduced. I have written to chief ministers to bring down excise duty," he said.

On the issue of stakes sale in the Air India, the Union minister said the government is determined to sell the airlines.