A Parliamentary panel on Thursday (February 8) suggested implementing route-specific caps on airfares and establishing a dedicated authority to oversee ticket prices, addressing concerns over escalating fares.
After reviewing the civil aviation ministry’s responses on airfares, the committee concluded that airline self-regulation on ticket pricing has been ineffective. The Department-related Parliamentary Standing Committee on Transport, Tourism, and Culture presented a report on the government’s actions regarding its recommendations on airfare regulation.
India seeing sharp hike in airfares
The panel noted instances of significant fare hikes, particularly during festivals or holidays, emphasizing the inadequacy of airline self-regulation. It recommended empowering the DGCA to regulate air tariffs and exploring the feasibility of establishing a separate entity with quasi-judicial powers to control airline fares.
Govt neither establishes nor regulates airfares
Presently, the government neither establishes nor regulates airfares. The committee reiterated its call for exploring route-specific fare ceilings, balancing airline and passenger interests. It suggested modifying fare ceilings during peak seasons, with prior notice to protect airlines’ commercial interests.
The committee highlighted that revenue management and shareholder value primarily influence airfare fixation, sidelining passenger concerns. It urged the Ministry to enforce compliance with Rule 13(1) of the Aircraft Rules, 1937, to control fare surges. The subjective nature of the term “reasonable profit” was noted, lacking clear definition or criteria.
Panel to reevaluate price variations
Moreover, the panel advocated reevaluating policies allowing price variations for the same flight, citing equity concerns. It questioned whether unbundling truly reduces air travel costs, cautioning that while it may benefit some passengers, others could face increased expenses due to additional charges.