Civil Aviation Minister Ashok Gajapathi Raju on Thursday said a regulatory mechanism for air ticket pricing will have an undesirable effect on the aviation industry and pointed out that globally a cap on flight ticket prices existed nowhere.
Responding to a calling attention motion on the issue in the Rajya Sabha, Raju said that while there were people who got air tickets at high prices, there were also those who got them at lower prices.
"A regulatory mechanism (on air ticket pricing) will mean putting caps and floors... it will have its impact on the aviation industry... Is it desirable," the minister asked as opposition members urged the government to take action against exorbitant ticket prices charged by airlines.
"How do I reason with people buying cheap cost tickets? It will push the prices 10 times for them," he said adding that all airlines have the minimum and maximum value of tickets displayed on their website.
As several members, including Deputy Chairman P.J. Kurien, pointed out at the jump in prices during the festival season, the minister said: "A festival is no emergency. People know the date months in advance and can book their tickets."
As opposition members protested and pressed for government action on the issue, Raju said: "I will try to see if we can find some way out."
