New Delhi- Aviation Minister Ram Mohan Naidu informed the Lok Sabha on Friday that the government cannot impose year-round caps on airfares, asserting that a deregulated aviation market benefits passengers and that fare spikes during festivals are driven by seasonal demand.
“Airfares rise during festive periods due to increased demand on specific routes. These fluctuations are natural, and imposing caps throughout the year is not practical,” the minister said. He added that deregulation was intended to spur sectoral growth by allowing market forces to function freely.
The remarks came in response to a private member’s bill seeking airfare regulation amid the ongoing IndiGo crisis, which has led to widespread flight cancellations and steep fare hikes. Naidu maintained that while the sector remains deregulated, the Aircraft Act empowers the Centre to intervene in exceptional circumstances to curb “opportunistic pricing.”
He cited past interventions during the Covid-19 pandemic, Maha Kumbh, Pahalgam terror attack, and the current IndiGo situation, when the government imposed temporary fare slabs to protect passengers.
Naidu also highlighted the ‘Fare Se Fursat’ initiative, launched with airlines to fix fares on 25 routes, particularly in the Northeast and southern states.
Emphasising long-term sectoral health, the minister said blanket price regulation could harm airlines, airports, and the wider aviation network. He further claimed that when adjusted for inflation, airfares in India have fallen by 43%, a sharper decline than in the US or China.
The government has also directed airlines to clearly display their permitted fare bands — including upper and lower limits — on booking platforms.
