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Indian airlines urged to reduce fare within week

12-15-2010 09:09 BJT

NEW DELHI, Dec. 14 (Xinhua) -- Indian Civil Aviation Minister Praful Patel Tuesday warned private airlines to cut fares within a week or face action from the Directorate General of Civil Aviation (DGCA).

"Airlines are exploiting public over spot fares. The Directorate General of Civil Aviation will take action if airlines don't cut fares within a week," Patel said here.

Patel emphasized that much more needs to be done to protect passenger interests and that the government was by no means satisfied.

"We have spoken to the airlines. In the last eight to 10 days after the DGCA's intervention, airlines have certainly come around and demonstrated more transparency in their fare structure. We feel much more needs to be done," he stated.

"We have advised and cautioned the airlines. They must do whatever is necessary in the larger passenger interest. The government is not regulating fares, but we can't be a mute spectator to this astronomical levels," he added.

Patel said that the national carrier Air India has serious management issues and hence needs a serious shake-up.

He also added that Air India equity infusion of 12 billion rupees (240 million U.S. dollars) may be cleared this week.

Editor:Du Xiaodan |Source: Xinhua

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