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The government has said airfares have moderated in 2024 compared to 2023 and notably
Airfares are dynamic and are a function of demand and supply.(Representative image)
The government has said airfares have moderated in 2024 compared to 2023 and notably, air ticket prices declined in various routes during festival seasons.
Government Stance on Airfare Regulation
Amid concerns in certain quarters that air ticket prices are ruling high, Minister of State for Civil Aviation Murlidhar Mohol told Rajya Sabha that airfares are not subject to regulation by the government and airlines have the flexibility to determine their airfares based on their operational needs while adhering to existing rules.
Maintaining Market Competitiveness
“…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,” he said in a written reply on November 25.
Dynamic Nature of Airfares
Airfares are dynamic and are a function of demand and supply.
Engagement with Airlines and OTAs
With continuous engagement with airlines & Online Ticketing Agents (OTAs) and keeping a watch on the movement of airfares by the government, Mohol said airfares have moderated in 2024 relative to 2023.
“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.
Seasonal Trends and Influencing Factors
According to him, the trends in airfare prices in India exhibit considerable seasonality, prevailing fuel price, the capacity of the aircraft operating on the route, competition in the sector, season, holidays, festivals, long weekends and events.
Operational Constraints and Pricing Fluctuations
Besides, he said the pricing is significantly influenced by operational constraints at airports, adding that the combination of constrained capacity and elevated demand leads to fluctuations in airfares.
Government as a Facilitator
“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.
(With PTI inputs)
