Cash-strapped Indian carriers have sought a regulatory mechanism to prevent predatory pricing of air tickets and asked the government to rationalise taxes on jet fuel and other levies. Maintaining that the cost levels of the Indian airlines were "probably the highest in the world",the Federation of Indian Airlines (FIA) said the price of aviation fuel for domestic use was 50 per cent higher in India than global levels. Besides,airport charges at privatised airports "continue to rise unabated",the interest costs were "highest in the world" and airspace congestion was forcing airlines to lose millions,it said. In a letter to Civil Aviation Secretary Nasim Zaidi,the FIA,which represents all major Indian carriers including Air India,also referred to predatory pricing or the practice of selling a product or service at very low price to drive competitors out of the market or create barriers for the new entrants. "It is critical to establish appropriate regulatory mechanism that would prevent malpractices like predatory pricing and capacity dumping in the market which could be detrimental to the interests of the industry as a whole," FIA Secretary General Anil Baijal said in the letter. Suggesting the establishment of a statutory mechanism for the purpose,he said the provisions of the Aircraft Rules,1937,could be considered for taking appropriate action against the defaulters. Making a case for hike in airfares,Baijal also claimed that domestic air ticket prices in India were "currently as low as one-third of what airlines charge in other countries over similar distances. "Lack of pricing maturity in an extremely price sensitive market like ours,is causing almost all the airlines to sell at fair levels that could be as low as 25 per cent below the costs" which was adversely affecting the financial position of the airline industry. Earlier,the airlines urged the government to allow them to fly to several foreign cities by tapping the unutilised bilateral rights and let them use the slots in several overseas destinations which were available but not being operated by any Indian carrier. FIA officials had recently met Civil Aviation Minister Vayalar Ravi and briefed him on their concerns regarding high rates of taxation on jet fuel and other financial issues.
