Lok Sabha Question No. 747 (UNSTARRED), answered on 2025-07-24
Subject: Domestic and International Air Fare
Ministry: CIVIL AVIATION
Asked by: Shri Navaskani K, Shri Shyamkumar Daulat Barve, Shri Varun Chaudhry

## GOVERNMENT OF INDIA

## MINISTRY OF CIVIL AVIATION Lok Sabha

UNSTARRED QUESTION NO. : 747

( TO BE ANSWERED ON THE  24th July 2025 )

## DOMESTIC AND INTERNATIONAL AIR FARE

747.    SHRI NAVASKANI K SHRI SHYAMKUMAR DAULAT BARVE SHRI VARUN CHAUDHRY

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether the Government acknowledges that excessive volatility in  domestic and international airfares is causing inconvenience to passengers  and  if  so,  the  policy  measures  being  considered  to address the said issue;
- (b)  whether  the  Government  is  considering  fixing  minimum  and maximum  fare  limits, especially during festivals, disasters or holiday  seasons  when  airfares  rise  sharply  and  if  so,  the  details thereof along with the time by which such a decision is likely to be executed;
- (c) whether it is true that algorithmic (dynamic) fare determination by private airlines is ignoring consumer interest;
- (d)  if  so,  whether  the  Government  proposes  to  introduce  any
- regulatory mechanism in regard and if so, the details thereof; and
- (e) whether the Government also proposes to publish a ' Fare Index ' for  different  routes  to  provide  passengers  with  an  estimate  of expected airfare and if so, the details thereof?

## ANSWER

Minister of State in the Ministry of CIVIL  AVIATION (Shri Murlidhar Mohol)

(a) to (e): 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 Rule 135 of the Aircraft Rules, 1937. Airlines offer fares on various levels which are driven by demand and market forces and as the demand goes up the seats on  lower  fare  levels  get  filled.  This  is  a  global  practice  in  the aviation industry. ; Further,  the  scheduled  operations  on  international  sector  to  and from  India  are  regulated  by  the  Bilateral  Air  Service  Agreement (BASA)  between  India  and  the  respective  foreign  country.  The BASA,  inter-alia,  includes  specific  provisions  regarding  'Tariffs'. Typically,  the  tariffs  set  by  foreign  airlines  are  not  required  to  be filed or approved by the Directorate General of Civil Aviation (DGCA) under  the  BASA  framework.  This  arrangement  allows  carriers greater  flexibility  in  determining  their  own  pricing  structures,  as long  as  they  adhere  to  the  broader  provisions  of  the  Air  Service Agreement.  As  a  result,  pricing  decisions  are  largely  left  to  the market forces and competitive dynamics, rather than being subject to regulatory oversight by the DGCA.; ; To ease surge in air fare, Ministry remains vigilant and intervenes to shift  capacity  from  one  sector  to  another  to  prevent  exorbitant pricing, and to ensure passenger comfort and welfare. During Onam 2024,  04  additional  weekly  flights  were  operated  between  KochiDubai from 08.09.2024 to 30.09.2024 by shifting capacity from metro point  (Delhi-Dubai  and  back)  to  non-metro  point  (Kochi-  Dubai  and back) to cater increase demand during peak festive season. ; the Shahi Snans and other important Snans, major

During  Maha  Kumbh,  as  peak  days  approached,  especially  during airlines increased  the  number  of  flights  to  Prayagraj  in  Uttar  Pradesh  to check the surge in airfares for the Maha Kumbh event. Initially there were  51  flights  per  week  to/from  Prayagraj  connecting  08  cities which  were  increased  by  482  additional  new  flights  per  week connecting 18 cities with approximately 70,000 weekly passengers to Prayagraj from across India. After interactions with airlines, the airfares to/from Prayagraj saw a decline.;

;

In the aftermath of the incident in the Pahalgam attack, there was an  apprehension  of  a  mass  exodus  of  tourists  from  J&K,  which would  have,  in  the  normal  course,  led  to  a  surge  in  airfares. Accordingly,  the  DGCA  issued  advisories  to  all  airlines  and  online travel  agencies.  These  directives  were  designed  to  guarantee seamless  connectivity  for  passengers  traveling  from  Srinagar  to multiple destinations  throughout  India,  to  ensure  a  clear  and transparent display of airfares, and to provide assistance to stranded tourists. The Airlines were also urged to desist from surge pricing, and for this purpose, airlines were advised to cap airfares for two major sectors, i.e. Srinagar-Delhi and Srinagar-Mumbai.; ; Understanding  the  challenges  faced  by  many  passengers,  airlines worked  diligently  to  ease  the  burden  by  waiving  cancellation  and rescheduling fees. Taking proactive action, not only the number of flights to and from Srinagar were increased from 51 on 22/04/25 to 56 on 23/04/25, but also the prices were kept in control. As a result of these interventions, a notable reduction in airfares from Srinagar was observed over two days. A flight from Srinagar to Delhi, priced over Rs 20,000/- on April 21, came down to a more accessible fare, falling below Rs 10,000/- by April 24.; ; The pricing of airfares is subject to dynamic fluctuations influenced by the fundamental economic forces of supply and demand. Various determinants  such  as  current  seat  occupancy,  fuel  costs,  aircraft capacity, and competitive factors significantly impact airline ticket pricing.; ; In  order  to  enhance  the  transparency  in  airfare,  DGCA  has  set-up Tariff  Monitoring  Unit  (TMU)  that  monitors  airfares  on  selected  78 routes  on  a  random  basis  by  using  airlines  websites  on  monthly basis to ensure that the airlines do not charge airfares outside the range declared by them, under the provision of sub-rule (2) of Rule 135  of  the  Aircraft  Rules,  1937.  This  covers  about  27%  of  the domestic traffic.; ;

Given the complex  dynamics  of  the Indian aviation industry, Government is  playing  the  role  of  a  facilitator  by  way  of  creating enabling environment to support the growth of the sector.;

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