Narendra Modi concerned over high air ticket fares

New Delhi: Prime Minister Narendra Modi has expressed “concern” over predatory pricing by the domestic carriers, a practice which is giving a “bad” name to the industry.

Union minister of state for civil aviation Mahesh Sharma said on Thursday, even as air-travel may become more expensive in the coming months, with the government reportedly considering levy of a two per cent cess on air tickets as part of the new civil aviation policy for viability gap funding of domestic carriers operating flights to regional and remote areas.

Predatory pricing refers to the practice either of levy of high spot fares by airlines just ahead of the date of travel or very high fares ahead of the festival season when air-travel is at its peak or else high charges in case of a medical emergency, and the term is also used for the other scenario of airlines offering low fares below operating costs to drive competitors out of the market.