Government defends market-based airfares amid IndiGo crisis | Fusion - WeRIndia

India’s aviation sector has again come under scrutiny as concerns grow over rising airfares during peak travel periods.

Union Civil Aviation Minister K Ram Mohan Naidu strongly defended the government’s pricing approach while addressing the Lok Sabha.

He said the Centre has the power to cap airfares during extraordinary situations. However, he clarified that year-long fare regulation is neither practical nor feasible.

According to the minister, airfares naturally rise during periods of high demand.

Therefore, seasonal travel patterns play a major role in ticket pricing. He explained that market supply and demand largely regulate airfare levels.

Naidu highlighted that festive seasons create sharp demand spikes on specific routes. For instance, Kerala-bound flights see heavy demand during Christmas and Onam.

During these periods, many Indian workers from Gulf countries return home. As a result, ticket prices on these routes often surge significantly.

Similarly, he pointed out that Kolkata routes experience fare hikes during Durga Puja.

Meanwhile, North Indian sectors see widespread price increases during Diwali. These demand-driven surges affect capacity and influence airline pricing strategies.

The minister stressed that capping fares across the year would disrupt market dynamics.

Moreover, such controls could reduce airline flexibility and operational efficiency. He added that airlines adjust prices based on seat availability and travel demand.

However, Naidu assured Parliament that the government actively monitors abnormal fare spikes. In extraordinary circumstances, authorities intervene to protect passenger interests.

Therefore, temporary fare caps remain an option during emergencies or crises.

Referring to the recent IndiGo-related concerns, he said the government responded promptly.

Additionally, officials assessed capacity constraints and operational challenges. He emphasised that corrective measures were taken where necessary.

Naidu also underlined the importance of long-term capacity expansion.

Increasing aircraft numbers and improving infrastructure can help stabilise fares. Moreover, better planning during festive seasons can ease pressure on ticket prices.

The minister concluded that airfare regulation requires a balanced approach.

While affordability matters, the sustainability of airlines is equally critical. Thus, the government prefers targeted intervention instead of blanket price controls.

Ultimately, Naidu reiterated that market forces remain central to India’s aviation growth.

However, passenger welfare will stay a priority whenever extraordinary conditions arise. Top of Form

Image Credit: Sravan0907, CC BY-SA 4.0, via Wikimedia Commons

Image Reference: https://commons.wikimedia.org/wiki/File:Rammohan_naidu_Kinjarapu_(cropped).jpg