NewsThe Director General of Civil Aviation (DGCA) has asked all airlines operating to Colombo to file their fares with the Civil Aviation Authority (CAA) in an effort to stop ongoing price wars and undercutting. The circular with relevant instructions was sent out to airlines yesterday afternoon, H M C Nimalsiri, DGCA, said. It points out that scheduled airlines operate to Sri Lanka based on an authorization granted by the CAA upon obtaining the requisite traffic rights through a bilateral air service agreement between Sri Lanka and the respective Government. In case of any variation in the filed airfares/rates, such variations shall be filed immediately with the Civil Aviation Authority of Sri Lanka prior to practicing. Respective bilateral air services agreements say that airlines cannot practice fares that drive competitors out of the market.

Source: Sunday Times September 22, 2016 07:52 UTC