The Public Accounts Committee (PAC) of the Indian Parliament convened on Wednesday, grappling with soaring airfares and the perceived inaction of regulatory bodies. Chairperson KC Venugopal lauded the meeting as exemplary, despite its often-partisan history. The primary focus was the inadequacy of the Airports Economic Regulatory Authority (AERA) in its regulatory role, prompting demands for increased accountability from private airport operators and airlines.
During the meeting, concerns were voiced over the rising costs of airfares, prompting several MPs to question the efficacy of both the Directorate General of Civil Aviation (DGCA) and the Civil Aviation Department. Calls for amending the AERA Act were made, aiming to enhance the body’s capability to regulate fare structures and address transparency issues in private operations. The soared user development fees (UDF) and the arbitrary setting of aeronautical and non-aeronautical tariffs were particularly contentious topics. Members advocated for a mechanism that mandates prior consultation on such matters, and some suggested the establishment of a quasi-judicial body to address fare-related grievances.
Presentations were delivered by the Civil Aviation Secretary and AERA Chairperson, detailing their current practices. However, PAC members expressed dissatisfaction with the responses, requesting more comprehensive feedback. Citing examples, members highlighted that UDF at certain privatized airports had increased significantly.
The PAC meeting underscored the broader dissatisfaction within legislative circles regarding regulatory transparency and effectiveness in safeguarding consumer interests. The discussion illustrated a pressing need for structural reforms within the regulatory framework to ensure accountability in India’s rapidly expanding aviation sector. As such, the meeting emphasized the role of regulatory bodies in balancing commercial interests with public welfare and highlighted the urgent necessity for reforms to ensure fair pricing mechanisms for air travel across the country.
Original Source: https://theshillongtimes.com/2025/01/23/skyrocketing-airfare-lack-of-tariff-regulation-dominate-pac-meeting/
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Publish Date: 2025-01-23 07:21:00
