Amid rising concerns over high air ticket prices due to IndiGo crisis, Civil Aviation Minister K Ram Mohan Naidu on Friday said the Central government has the power to impose caps on airfares during extraordinary circumstances, as seen in the recent IndiGo meltdown, however, the government cannot cap airfares for the entire year, as ticket prices typically rise during the festive season.
Replying to a debate on a private member's resolution on 'Resolutions: Appropriate Measures to Regulate Airfare in the Country' in the Lok Sabha, the minister talked about non-availability of aircraft and added that discussions are on to make planes in India.
The resolution, which was later withdrawn, was moved by Congress member Shafi Parambil. There are multiple levels in the aviation ecosystem and various aspects, including the viability of airlines, he noted.
Centre had imposed distance-based cap on domestic airfares
The civil aviation ministry earlier this month imposed a distance-based cap on domestic airfares in the wake of the IndiGo flight disruptions. Domestic air ticket pricing remains "on par with other nations" and it would not be feasible for the government to cap airfares across the nation, Naidu said.
According to him, a deregulated market ultimately benefits consumers and that ticket prices typically rise during festive seasons. He also emphasised that deregulation remains central to the growth of civil aviation.
Deregulation does not give airlines a free hand, says minister
"If we want the civil aviation sector to grow, the first and foremost requirement is to keep it deregulated so that more players can enter the market." However, the minister also said that deregulation does not give the airlines a free hand and the government retains powers to intervene when needed.
Naidu said that state-owned Alliance Air has started a three-month pilot scheme of fixed airfares and after looking into how much it has benefited passengers as well as the feedback, the ministry might also consider a similar plan for private airlines.
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