Airline Ticket Prices: Govt Urges Moderation

New Delhi, Jul 29 (PTI) Airlines have been advised to self-regulate as well as sensitised to exercise moderation in pricing of air tickets, the civil aviation ministry told the Rajya Sabha on Monday.

There have been persisting concerns over high airfares, especially during peak and festival seasons.

Minister of State for Civil Aviation Murlidhar Mohol said the ministry holds consultation with airlines and the representatives are advised to self-regulate and keep passengers' interest in mind while fixing the airfares.

"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," he said in a written reply.

Under current regulations, airfares are neither established nor regulated by the government after the repeal of the Air Corporation Act in March 1994.

"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," the minister said.

He also added that the direct impact of deregulation is that a passenger in a lower income group can afford to travel by air.

The Directorate General of Civil Aviation (DGCA) has set up a Tariff Monitoring Unit (TMU) that monitors airfares on select domestic sectors on random basis by using airlines websites on monthly basis to ensure that the airlines do not charge airfares outside the range declared by them, Mohol said.

Given the complex dynamics of the Indian aviation industry, the minister said the government is playing the role of a facilitator by creating an enabling environment to support the growth of the sector.

India is one of the world's fastest growing civil aviation markets.