Photo: Mint
Photo: Mint

Government to set up mechanism to monitor airfares

  • The government will not interfere in the pricing mechanism of the airlines
  • The aviation sector will benefit from the finance minister's decision to reduce corporate tax rate, Puri said

NEW DELHI : Civil aviation minister Hardeep Singh Puri on Friday said that the government has ordered the civil aviation ministry and the Directorate General of Civil Aviation (DGCA) to set up a mechanism to monitor airfares on a regular basis.

"We will use the data to hold regular discussions with airlines," Puri told reporters during a briefing.

However, the government will not interfere in the pricing mechanism of the airlines.

"It is only to monitor on ongoing basis how airlines pricing is working and if we can get some learning from that and then discuss with airlines," Puri said.

"It is not a regulatory mechanism but just a monitoring mechanism," Puri added.

Finance Minister Nirmala Sitharaman on Friday announced a cut corporate tax rate for domestic companies that do not avail of any tax incentive to 22%. Effective corporate tax rate after surcharge will be 25.17%. New manufacturing companies will have to pay an even lower corporate tax rate of 15%.

The aviation sector will benefit from the finance minister's decision to reduce corporate tax rate, Puri said.

"This decision will drive growth in the country," Puri added.

Puri added that the current government is determined to sell Air India in a short period of time.

Close