The Civil Aviation Ministry on Monday (July 29) informed the Rajya Sabha that airlines have been advised to self-regulate and exercise moderation in setting airfares. This comes amid ongoing concerns about high ticket prices, particularly during peak and festival seasons.
Minister of State for Civil Aviation Murlidhar Mohol stated that the ministry regularly consults with airlines to encourage them to consider passengers’ interests when determining fares. Airlines have been reminded to moderate pricing, especially during emergencies and natural disasters.
“Airlines have also been sensitised to exercise moderation in pricing and to keep passengers’ interest in mind. The airlines have committed to ensure that airfares do not surge during events such as natural disasters, calamities, etc,” he said in a written reply.
Govt no longer regulates airfares
Since the repeal of the Air Corporation Act in March 1994, the government no longer regulates airfares. Globally, deregulation has led to increased competition among airlines, resulting in lower fares and easier market entry for new carriers, according to Mohol.
“Globally, most countries have deregulated their aviation sector, i.e., removing government-imposed entry and price restrictions on airlines. Deregulation has led to increased competition between airline carriers, leading to decrease in airfare. As a result of deregulation, entry into the airlines industry for a potential new airline has become easier, resulting in many new airlines entering the market, thus increasing competition,” the minister said.
DGCA on airfare compliance
The Directorate General of Civil Aviation (DGCA) has established a Tariff Monitoring Unit (TMU) to oversee airfare compliance. This unit randomly checks airfares on select domestic routes monthly to ensure they remain within declared ranges.
Mohol emphasised that the government’s role is to facilitate growth in the aviation sector, which is one of the fastest-growing in the world, rather than to impose strict regulations.