Does Govt Regulate Airfares In India? See MoS Civil Aviation Murlidhar Mohol's Response

The government, on Wednesday, said that airfares have cooled down in 2024, as against 2023. Minister of State for Civil Aviation Murlidhar Mohol told the Rajya Sabha that airfares are not subject to regulation by the Government of India.

Does Govt Regulate Airfares In India? See MoS Civil Aviation Murlidhar Mohol's Response

"...the government generally refrains from regulating airfares to maintain market competitiveness, however, it remains vigilant, and the government intervenes to shift capacity from one sector to another to prevent exorbitant pricing to ensure passenger comfort and welfare," Mohol said in a written reply on November 25.

Adding that airfares are dynamic and are a function of demand and supply, Mohol further added that airlines have the flexibility to determine airfares based on their operational needs while adhering to existing rules.

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"The airlines have also been sensitised to ensure reasonability while fixing the airfares and to keep passengers' interest in mind. Notably, during festival seasons, a decrease in airfares was observed in various sectors," he added. According to Mohol, some of the factors that determine airfares include - seasonality, prevailing fuel price, the capacity of the aircraft operating on the route, competition in the sector, season, holidays, festivals, long weekends and events. He further added that pricing is significantly influenced by operational constraints at airports, along with the combination of factors such as constrained capacity and elevated demand, which lead to fluctuations in airfares.

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