Govt Asks Airlines To Devise Mechanism To Ensure Reasonable Airfares

The government on Monday urged airlines to devise a mechanism to ensure reasonable airfares amidst a surge in ticket prices, particularly on certain routes previously served by Go First. During an hour-long meeting of the airlines advisory group, Civil Aviation Minister Jyotiraditya Scindia expressed his concerns about the steep rise in airfares on specific routes, particularly in those that were previously serviced by Go First. 

A mechanism should be devised by airlines to ensure reasonable pricing within the high RBDs (Reservation Booking Designator) and the same would be monitored by the Directorate General of Civil Aviation (DGCA), the ministry stated 

Furthermore, the ministry emphasised that airlines need to keep a close check on airfare pricing "in view of the humanitarian situation and monitor and control any surge in ticket prices to/from that region" during calamities. In the case of the unfortunate Odisha tragedy, the ministry advised airlines to provide free carriage services to the families of the deceased. 

In March, Civil Aviation Minister Jyotiraditya Scindia had informed the Lok Sabha that "airfares are neither established nor regulated by the government." He explained that "the airline pricing system runs in multiple levels (buckets) which are in line with practices being followed globally." Scindia highlighted that prices are set by airlines based on market conditions, demand, seasonality, and other market forces. The airfare increases as demand for seats rises and lower fare buckets get filled quickly. 

India, one of the fastest growing civil aviation markets in the world, has been steadily recovering in domestic passenger traffic after being significantly impacted by the COVID-19 pandemic. In April, domestic airlines flew 128.88 lakh passengers, according to the latest official data. However, Go First, facing a crisis, is currently undergoing a voluntary insolvency resolution process.