In response to calls for airfare regulation, civil aviation minister K Rammohan Naidu stated in the Lok Sabha on Friday that the government still has the authority to step in in exceptional situations, such as the recent surge in ticket prices brought on by the widespread cancellation of IndiGo flights, to shield travelers from opportunistic pricing. However, he emphasized the significance of deregulation and airline viability for the industry to expand.
Rejecting complaints of skyrocketing airfares, he claimed that when the consumer price index is taken into account, the growth in airfares is really negative.
He insisted that it is clear that a certain pricing level has been maintained to keep it cheap for people, pointing out that it has decreased by 43% in India compared to 23% in the US and 34% in China.
"We all believe that these businesses are charging exorbitant prices. However, none of them are profitable. The majority of them are losing money. In response to a discussion on a private member's motion on "appropriate measures to regulate airfare in the country," he stated, "We have to keep this in mind."
He responded to opposition members who criticized the government for alleged duopoly in the aviation industry and instances of outrageous airfares by saying that the governing alliance is dedicated to people and making sure that more and more locations are added to the aviation map, regardless of the amount of politics they use.
Naidu claimed that if this were not the case, Prime Minister Narendra Modi would not have won three consecutive elections. He emphasized that since the industry was deregulated in 1994, it has grown as more airlines entered the market and competition increased for the advantage of travelers. He added that courts and the Competition Commission of India have also supported deregulation.
In order to argue for regulation, Congress MP Shafi Parambil highlighted the ticket of more than Rs 60,000 in a journey from Srinagar to Delhi after the terror attack in Pahalgam. However, he withdrew his motion in accordance with the custom in cases involving private members' business.
Naidu pointed out that the government has a tariff monitoring unit, which is being strengthened by statutory measures in aviation regulations.
He said that the government had taken similar actions following the terror attack in Pahalgam and had stepped in to control airfares to Prayagraj for this year's Mahakumbh.
He emphasized that the government has spoken with airlines to increase capacity in particular routes during such events, adding that price surges do not happen every day but rather primarily during holiday seasons.
One of the sector's limitations is the availability of aircraft, and the government is working on a program to ensure that aircraft are made in India and that the nation becomes a hub for leasing similar to Singapore and Ireland, he continued.
