The government wants Indian carriers to pass on the benefits of cheaper fuel to passengers to boost air travel, but insists it will not dictate ticket prices to the industry.
"Well, crude goes up, crude comes down. And airlines were going under lots of losses and accumulative losses were tremendous. Now they have a respite. Now, we will request them to transfer (the benefit) as much as they can to the travelling public," Civil Aviation Minister Ashok Gajapathi Raju said.
He was asked whether the government would ask airline companies to reduce fares in view of falling aviation fuel prices.
"If you start dictating on ticket prices, then there is going to be another type of problem. We don't intend to do that," the minister said in Kochi.
Aviation fuel prices have declined amid a slump in international oil prices due to oversupply.
Raju said the Aviation Ministry has conducted an analysis on ticketing and it was found that only 1.7 per cent of air tickets were high priced in a whole year in the country.
The minister said he was not in favour of the existing "5/20 rule" under which a domestic carrier is allowed to fly abroad only after completing five years of domestic service and having a minimum of 20 aircraft in its fleet.
"I don't think that anywhere else in the world, we have a rule like that. And nobody has been able to explain to me why it is (there)?" he said.
The minister said the new civil aviation policy will be out soon.
"It is already in an advanced stage. There are 2-3 small issues (to be sorted out)," he said.
BW Reporters
Haider Ali Khan is an alumnus of IIMC. He holds a degree in English Journalism from the prestigious campus. His passion includes Aviation, Technology, Politics and Sports.
