From The Economic Times · Arindam Majumder · · 1m
Government no plans to regulate airfares
Government says no plans to cap airline prices but will set limits during natural disasters.
In brief
Government says no plans to cap airline prices but will set limits during natural disasters. India's government has no plans to regulate airline ticket prices but will impose temporary fare caps during natural disasters or disruptions. Originally reported by The Economic Times.
Government stance
The government has no plans to regulate ticket pricing by airlines under new air fare rules.
“There are no plans to interfere in the free market mechanism which fixes airfares based on demand and supply”
Temporary fare caps
Government will set airfares limits during natural disasters or disruptions to prevent public hardship.
“However, during periods of extraordinary situations like natural calamities or any disruption, the government will hold power to fix caps on airfares so that hardships for the common public can be prevented”
Rules approval
New air fare rules under Bhratiya Vayuyan Adhiniyam 2024 received administrative approval and will be published within two weeks.
“The rules on airfares under the Bhratiya Vayuyan Adhiniyam, 2024, have received administrative approval and will be published within two weeks”
Fare approval process
Airlines must get airfares approved by DGCA one month in advance and display fare structures on websites.
“Under the new rules, airlines will be required to get their airfares approved by civil aviation regulator Directorate General of Civil Aviation (DGCA) a month in advance and will be required to display the fare structures on their website”
Fare increases
Airfares this festive season are 68% higher than last year due to fuel costs and fewer flight options.
“Airfares this festive or year-end holiday season are 68% higher than a year ago due to higher fuel costs and fewer flight options”
Minister's comments
Civil aviation minister says maintaining reasonable airfares is challenging due to unstable fuel prices.
“Union civil aviation minister Ram Mohan Naidu said while the ministry was keen on maintaining reasonable airfare prices, it was proving to be a challenging task due to unstable aviation turbine fuel prices”
The one thing
India's government has no plans to regulate airline ticket prices but will impose temporary fare caps during natural disasters or disruptions.
