Minister of State in the Ministry of CIVIL AVIATION (Dr. Mahesh Sharma)
(a) The domestic air services have been deregulated by the Government & it has laid down Route Dispersal Guidelines (RDGs) with a view to achieve better regulation of air transport services taking into account the need for air transport services of different regions of the country. It is, however, up to the airlines to provide air services to specific places depending upon the traffic demand and commercial viability. As such the airlines are free to operate anywhere in the country subject to compliance of RDGs issued by the Government.
(b) & (c) Air fares are not regulated by the Government. Under the provision of Sub Rule (1) of Rule 135, Aircraft Rules 1937, airlines are free to fix reasonable tariff having regard to all relevant factors, including the cost of operation, characteristics of services, reasonable profit and the generally prevailing tariff. Air fares so established by airlines are published on their respective websites under the provision of Sub Rule (2) of Rule 135, Aircraft Rules 1937.;
The domestic airlines pricing runs in multiple levels (bucket or RBD) which are in line with the practice followed globally. Usually, the lower levels of the fare in the fare bucket are assigned to advance purchase (popularly known as Appex Fares) bookings (e.g. up to 90, 60, 30, 14 and 07 days before departure). As time lapses and date of journey approaches closer (from 07 days to date of departure), the fare in higher side of fare bucket are available for purchase.
Airline remains compliant to the regulatory provisions of Rule 135 as long as the fare charged by them does not exceed the fare established and displayed on their website.
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