New Delhi, 21 October: The central government has clarified that it has no plans to impose regular caps on domestic airfares, despite growing concerns over soaring flight ticket prices during the festive season.
Airlines will continue determining ticket prices based on demand and supply, maintaining the existing market-driven pricing system.
Government Plans Emergency Fare Controls
However, the government is preparing new aviation regulations that would allow authorities to impose temporary airfare caps during extraordinary circumstances.
These could include floods, earthquakes, pandemics and other major disasters when passengers face unusually high travel costs.
According to an Economic Times report, a senior government official said the Centre does not intend to interfere with the free-market mechanism governing airline ticket prices.
The proposed emergency powers are intended to protect passengers from excessive fares during crises without disrupting normal airline operations.
DGCA Introduces New Pricing Requirements
Under the new regulatory framework, airlines will reportedly be required to submit their fare structures one month in advance and publish the details on their official websites.
The Directorate General of Civil Aviation (DGCA) will monitor compliance and ensure airlines do not charge passengers beyond their declared maximum fares.
Meanwhile, airline stocks witnessed sharp declines amid developments surrounding the government’s proposed pricing regulations.
Aviation Minister Highlights Fuel Cost Challenges
Civil Aviation Minister Ram Mohan Naidu recently said the government remains committed to keeping air travel affordable for passengers.
However, fluctuating aviation turbine fuel prices continue to make airfare regulation challenging.
Supreme Court Examines Airfare Concerns
The Supreme Court is also hearing a case concerning excessive airfares and hidden charges imposed on passengers.
The government has informed the court that the proposed aviation regulations will be published within two weeks.
The emerging framework indicates that airlines will retain pricing freedom during normal periods, while authorities could intervene during emergencies to prevent unreasonable fare increases and protect consumers from sudden financial burdens.
