Civil Aviation Minister Ram Mohan Naidu told the Lok Sabha on Friday that it would not be feasible for the government to cap airfares across the country, arguing that a deregulated market has helped India’s aviation sector expand and ultimately benefits consumers.
"We also have statistics that show that when we compare India’s airfares with those in other countries, the rate of increase is actually negative," Naidu said, adding that countries that have seen rapid aviation growth typically operate deregulated markets that encourage more players and cooperation. He said ticket prices are best discovered through demand and supply, with passengers gaining over time from competition.
Why fares rise
Naidu said airfares are not a single charge and include multiple components, with aviation turbine fuel among the most significant cost drivers. He also pointed to festive-season demand as a recurring factor behind fare spikes.
The government’s emergency lever
While backing deregulation, Naidu underscored that the Centre retains powers under the Aircraft Act to cap fares in extraordinary situations to protect passengers.
He cited instances such as Covid-19, surges around large events like Mahakumbh, the Pahalgam–Srinagar situation, and the recent IndiGo disruption as examples where the government has stepped in to limit fares.
Capacity and connectivity
The minister positioned capacity augmentation as the longer-term answer to recurring price spikes, signalling the government’s view that supply constraints, not just airline pricing, shape fare volatility.
He also cited Alliance Air’s role in operating critical routes, particularly in the Northeast, to maintain connectivity to underserved regions while keeping competition open.
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