Airlines and Govt discuss issue of unsustainable fares

Concerned over the sustainability of airlines in the country, the government today discussed the issue of unsustainable fares with domestic airlines.

Government sources said that the airlines did bring up the issue of aggressive pricing on several routes that becomes unsustainable. “They said that the aggressive pricing, at times, impacts sustainability of airlines in the country,” said a government official present in the meeting.

The official added that the government is looking into the issue. “We are looking into it,” said the official.

The issue of unsustainable fares was raised at a time when the industry is entering into the third quarter, which is a high demand quarter for airline s.

Domestic airlines, who earned better yields during the first quarter of the fiscal on the back of grounding of Jet Airways, have been complaining of low fares during the second quarter that is also considered a non-peak for airlines.

This issue, along with various others, were raised in the first official meeting of aviation ministry Hardeep Singh Puri today.

(Source: ET)

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