Government Urges Airlines to Moderate Ticket Prices Amid Airfare Surge

The government urges airlines to maintain reasonable and balanced air ticket prices in response to the recent surge in fares on specific routes, particularly following the suspension of flights by troubled airline Go First. Although there are no intentions to regulate airfares, a senior official emphasized the importance of avoiding substantial discrepancies between ticket prices in the lower and higher fare categories offered by airlines.

India’s domestic passenger traffic has been steadily increasing, rebounding from the significant impact of the COVID-19 pandemic. As one of the world’s fastest-growing civil aviation markets, the country continues to experience growth in this sector.

Since Go First ceased operations on May 3, airfares on certain routes previously served by the budget carrier, such as Delhi-Srinagar and Delhi-Pune, have significantly increased. This reduction in capacity comes at a time when peak domestic air travel is approaching.

A senior civil aviation ministry official has urged airlines to exercise restraint and maintain a reasonable balance in ticket pricing to prevent excessive pricing and ensure passenger convenience. The official, who requested anonymity, stressed the significance of preventing substantial discrepancies between the lowest and highest fare categories and ensuring that passengers do not bear the burden of exorbitant fares.

However, the official clarified that there are currently no plans to implement airfare regulations.

Go First Airline Flight cancellation

Go First, currently undergoing insolvency resolution proceedings, has canceled flights until May 26. IndiGo has grounded several planes due to issues with Pratt & Whitney engines, and SpiceJet is also facing financial difficulties.

The capacity issue is a concern, and it is hoped that Go First will resume flights as soon as possible to alleviate the situation before the peak travel season in June.

According to recent official data, domestic airlines transported 128.88 lakh passengers in April.

Certain routes previously served by Go First have experienced a significant increase in airfares. For example, the average one-way spot fare on the Delhi-Leh route rose by 125% to an average of Rs 13,674 during the period of May 3-10, compared to the period of April 20-28, as reported by travel portal Ixigo.

During the same period, the average one-way spot fare on the Delhi-Srinagar route increased by 86% to Rs 16,898, according to the data.

After the deregulation of the airline sector in the country, airfares are determined by the market and not regulated by the government. Airline pricing operates in multiple levels known as “buckets” or Reservation Booking Designators.

In a statement to the Lok Sabha on March 16, Civil Aviation Minister Jyotiraditya Scindia clarified that the government does not establish or regulate airfares. He explained that airline pricing follows global practices and is based on factors such as market conditions, demand, seasonality, and other market forces. Airlines increase the airfare in response to increased demand as seats in the lower fare buckets sell out quickly.

Also, Read: Indian Aviation News 

Aviation News

International Aviation News

Private & Non-scheduled Charter operators in India

APPROACH PLATES

Go through, the Mall of Aviation

For the best HELIPAD CONSULTANCY