Civil Aviation Ministry Scolds Airlines, Asks for Air Fare Moderation

Speaking to the Rajya Sabha on July 29, 2024, the Civil Aviation Ministry announced that it has “advised” airlines to exercise moderation when pricing air tickets. The Ministry has also asked the airline companies to self-regulate and be sensitive to travellers' concerns when doing so.

Air Fares to Become Cheaper?

Many travellers have recently complained of high airfares and excessive airline hikes. In response to these concerns, the Minister of State for Civil Aviation, Murlidhar Mohol, has stated that the ministry has been holding sessions with airlines and their representatives and has asked them to self-regulate the prices and hikes to keep the interests of the travellers in mind.

“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. 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,” Mohol stated in a written reply.

Airfare regulations by the government have been repealed since 1994, which means that the government does not establish or regulate airfares, and airlines are free to do that on their own. However, in a recent development, the Directorate General of Civil Aviation has set up a Tariff Monitoring Unit, which monitors airfares on a random basis to ensure that airlines are not charging out-of-pocket prices.