Flight ticket prices: Why the government won’t cap domestic airfares despite festive-season surges
In response to concerns about dynamic airfare pricing, the Centre said it does not impose caps as airlines make these decisions based on the “forces of supply and demand”, It added that the DGCA monitors fares on specific routes to ensure compliance with declared tariffs.
The Indian government is not considering a cap on domestic airfares despite steep fare surges during festive seasons and peak travel periods, according to the Ministry of Civil Aviation. The Ministry's spokesperson, Murlidhar Mohol, explained that the government does not regulate airfares, as the Air Corporation Act was repealed in March 1994, leaving airlines to determine prices based on operational and economic viability.
He further elaborated that airfares fluctuate dynamically due to factors such as seat occupancy, fuel costs, aircraft capacity, and seasonal fluctuations. Mohol also mentioned that airlines offer lower fare buckets for advance bookings, allowing passengers to secure more affordable prices during high-demand periods. Additionally, the Directorate General of Civil Aviation (DGCA) has established the Tariff Monitoring Unit (TMU) to monitor airfares on selected 78 routes randomly, ensuring compliance with declared tariffs, which covers around 27% of domestic traffic.
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