New Delhi: The civil aviation ministry could very soon issue a set of guidelines to aviation regulator DGCA to prevent airlines from both over-charging passengers in spot fares while at the same time ensuring that airlines do not offer very cheap fares below the cost of operation.
Meanwhile, with former promoter of SpiceJet Ajay Singh trying to bring investment of at least Rs1000 crore into the cash-strapped airline, speculation is rife that US-based investment firm JP Morgan could be interested in investing in the airline.
Speculation is also rife that market leader IndiGo which has already captured more than one-third of the aviation market could buy more aircraft to boost its own network, possibly upto even 80 aircraft.
The ministry sources had recently indicated that there could be a cap of about Rs15,000 on maximum fare on any sector. The ministry sources are exploring the possibility of linking fares to the distance per km. Civil aviation minister Ashok Gajapathi Raju is currently examining the proposal which could be cleared by the ministry very soon, sources said.
As far as SpiceJet is concerned, as already reported, Ajay Singh is expected to invest in SpiceJet as the head of a group of investors.In fact, about two US-based investors are said to be serious about investing in SpiceJet and one of these firms could be JP Morgan.
Meanwhile, ministry sources said market leader IndiGo could acquire more aircraft to further boost its network connectivity and market-share.IndiGo had captured more than 33 percent of the market-share in the DGCA’s latest market data figures for November this year. Meanwhile, the government informed Parliament on Tuesday that Air India suffered a loss of about '5,388 crore in 2013-14 (Provisional) and that its loss in the current financial year (2014-15) could be about Rs4,345 crore.
