News
Indian airlines given free hand to set ticket prices
19 July 2006
The Indian government has given the country's airlines the right to set ticket prices as they wish.
It is hoped the move to deregulate the market could eventually bring down the cost of flying to and within India.
Previously Indian airlines were forced to get permission for prices from the national regulator, the directorate general of civil aviation (DGCA).
'The government does not want to regulate air fares. This is free market,' a DGCA source told the Business Standard.
The policy was put in place to stop larger airlines forming cartels to push up the costs.
However, with the arrival of low cost airlines into the Indian market it was felt the legislation was holding prices up and was no longer necessary although safeguards will still be in place to stop any price fixing.
© Adfero Ltd
It is hoped the move to deregulate the market could eventually bring down the cost of flying to and within India.
Previously Indian airlines were forced to get permission for prices from the national regulator, the directorate general of civil aviation (DGCA).
'The government does not want to regulate air fares. This is free market,' a DGCA source told the Business Standard.
The policy was put in place to stop larger airlines forming cartels to push up the costs.
However, with the arrival of low cost airlines into the Indian market it was felt the legislation was holding prices up and was no longer necessary although safeguards will still be in place to stop any price fixing.
© Adfero Ltd
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