Financial Express, January 22, 2025
The issue of “skyrocketing” airfares and the perceived inaction of government agencies took centre stage during the latest meeting of Parliament’s Public Accounts Committee (PAC) on Wednesday. Several Members of Parliament (MPs) expressed their dissatisfaction with private airport operators and airlines, calling for increased accountability and measures to provide relief to passengers.
PAC Chairperson K C Venugopal described the session as “one of the best” sittings, despite the panel having witnessed heated debates along party lines in the past. Venugopal stated that the Airports Economic Regulatory Authority (AERA) faced criticism for its inefficacy as a regulatory body. “We need clear-cut answers,” he told PTI after the meeting, emphasising that the regulator failed to adequately respond to queries raised by the members.
Members highlighted the urgent need for an amendment to the AERA Act to enhance the regulator’s ability to oversee fare hikes and ensure greater accountability and transparency. Some MPs criticised the “arbitrary” rise in user development fees (UDF) and ticket prices, arguing that the existing framework lacks mechanisms to hold private operators accountable.
A source revealed that MPs were particularly concerned about how both aeronautical and non-aeronautical tariffs are decided. “A few MPs were upset over the lack of prior consultation mechanisms and flagged the need for a quasi-judicial body to address such issues,” the source added.
Regulators Under Fire for Inadequate Oversight
The meeting was attended by top officials, including the Civil Aviation Secretary and the AERA Chairperson, who provided presentations on key issues. However, PAC members were reportedly dissatisfied with their responses and have asked for a detailed follow-up report addressing their concerns.
It was noted that in some airports, UDF has increased significantly since privatisation, leading to passenger dissatisfaction. MPs sought clarity on the revenue collected under various charges and its subsequent utilisation.
Transparency in Revenue Collection Demanded
The issue of real estate development at airports also came under scrutiny, with MPs calling for transparency in the revenue generated from rentals and its appropriate utilization. “An MP raised concerns about the funds collected from airport rentals and insisted on transparency and accountability to ensure the revenue is used for passenger benefits,” a source stated.
UDAN Scheme Faces Challenges
While acknowledging the government’s efforts under the UDAN scheme, aimed at boosting air connectivity to smaller cities, MPs expressed concerns over its implementation. They noted that several routes remain underserved or inadequately served, as private airlines prioritise more profitable sectors. One MP pointed out that this undermines the scheme’s goal of making air travel accessible to the common man.
Next Steps and Further Deliberations
Following the meeting, PAC has directed aviation regulators to provide a comprehensive report addressing the raised concerns and suggested measures to ensure better regulation of airfares and tariffs. The panel remains committed to working towards making air travel more affordable and transparent for passengers.
This news can also be viewed at:
https://www.financialexpress.com/
https://www.thehindu.com/