The Indian government has called on airlines to ensure reasonable airfares in response to the surge in ticket prices on specific routes, particularly those previously served by Go First.
During a meeting of the airlines advisory group, Civil Aviation Minister Jyotiraditya Scindia expressed concerns about the sharp increase in airfares on these routes.
Indian Airlines Asked To Devise Mechanism For Reasonable Ticket Prices
In light of Go First’s suspension of operations since May 3, there has been a reduction in capacity, coinciding with the upcoming peak domestic travel period. The government has urged airlines to self-monitor airfares on these routes, specifically within the high Reservation Booking Designator (RBD) categories.
The Directorate General of Civil Aviation (DGCA) will oversee the monitoring process. It is important to note that airfares in India are currently deregulated, meaning they are determined by market forces rather than government intervention.
Furthermore, the government has emphasized the need for airlines to closely monitor air ticket prices during times of calamity. In order to address the humanitarian situation, airlines are expected to control any surge in ticket prices to and from affected regions.
The recent tragedy in Odisha serves as an example, where airlines have been advised to provide free carriage services for the families of the deceased.
Airfares in India Neither Established Nor Regulated: Minister Scindia
Minister Scindia has previously stated that airfares in India are neither established nor regulated by the government. Instead, they are determined by airlines based on market demand, seasonality, and other market factors. As demand for seats increases, lower fare buckets sell out quickly, leading to higher airfares.
India’s civil aviation market is one of the fastest-growing in the world, with domestic passenger traffic gradually recovering from the impact of the COVID-19 pandemic. According to recent official data, domestic airlines carried 128.88 lakh passengers in April.
Amidst these developments, Go First, which is facing a crisis, has initiated a voluntary insolvency resolution process. The airline’s situation has contributed to the challenges in maintaining reasonable airfares on certain routes, further necessitating the government’s call for airlines to monitor and control ticket prices.
