New Delhi: The Supreme Court has asked the aviation regulator and the industry to explain the rationale of imposing charges over and above base fares on airline passengers, appearing to disregard airlines' defence that these levies were needed to deal with fluctuating market conditions.
Seeking more clarity on the volatility in airfares and the sharp differences in to and fro fares, the top court also sought to know whether the final rates charged by various airlines were within bands declared by them under the rules.
The Federation of Indian Airlines (FIA), an industry body for airlines, had earlier justified all the extra charges, attributing them to market volatility while denying that the operators were acting in concert and resorting to anti-competitive behaviour. The FIA also said that the Competition Commission had already cleared them of this charge.
18/01/13 Economic Times