DGCA monitors airfares on certain routes to ensure reasonable airfares

Airlines are free to fix reasonable tariffs by taking into account all relevant factors: Ministry of Civil Aviation

The government on Monday told Rajya Sabha that the airfares on certain routes are monitored in a 15-day cycle to ensure reasonable flight tickets.

In a written reply to a question in Rajya Sabha, Minister of State in the Ministry of Civil Aviation Gen (Retd) V. K. Singh stated that the Directorate General of Civil Aviation (DGCA) monitors the airfares on certain routes on a monthly, rolling basis for a 15 day's cycle, in order to ensure reasonable airfares.

"Airfares are not regulated by the governments. The airlines are free to fix reasonable tariffs by taking into account all relevant factors, including the cost of operation, characteristics of service, reasonable profit and the generally prevailing tariff," the Ministry of Civil Aviation said in an official statement.

It also stated that the airfare decided by the airlines is shown on their respective websites.

"In order to prevent excessive charging and sudden surges in airfares and to promote transparency by scheduled domestic airlines, the DGCA has issued air transport circular wherein airlines are required to display on their respective websites route-wise tariff sheet across their network in various fare categories," it added.

The ministry further said that during the last two years, the COVID-19 pandemic adversely impacted the revenue streams of businesses, including the aviation sector.

"Under normal circumstances, airfares are neither established nor regulated by the government. However, due to the unprecedented circumstances, fare bands with upper and lower limits were introduced by the government as a special measure. The fare bands serve the dual purpose of protecting the interests of the travellers as well as of the airlines," it added.

According to the statement by the ministry, the fare bands were revised from time to time in view of the substantial hike in the price of Aviation Turbine Fuel (ATF) in order to keep the aviation sector viable while protecting the interests of the passengers.