Lok Sabha Question No. 2848 (UNSTARRED), answered on 2024-12-12
Subject: Increase in Airfare at Ahmedabad Airport
Ministry: CIVIL AVIATION
Asked by: Shri Manickam Tagore B

## GOVERNMENT OF INDIA

## MINISTRY OF CIVIL AVIATION Lok Sabha

## UNSTARRED QUESTION NO. : 2848

( TO BE ANSWERED ON THE  12th December 2024 )

## INCREASE IN AIRFARE AT AHMEDABAD AIRPORT 2848.    SHRI MANICKAM TAGORE B

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) the manner in which the increased airfare at Ahmedabad Airport, for flights during events like the ICC Cricket World Cup, align with the responsibility of the Government to ensure affordability for the common man;
- (b)  the  manner  in  which  the  said  hike  in  airfare  would  impact  the affordability of air travel for the common man, especially those who rely  on  regular  flights  rather  than  charter  services  at  the  said airport; and
- (c)  the  manner  in  which  the  Government  proposes  to  ensure  that such  hikes  do  not  disproportionately  affect  ordinary  passengers including those who travel for business or leisure

## ANSWER

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

- (a) to (c): The airfares are dynamic in nature and follow the principle of  demand  &  supply.  The  trends  in  airfare  prices  in  India  exhibit considerable seasonality, prevailing fuel price, the capacity of the aircraft operating on the route, competition on the sector, season, holidays,  festivals,  long  weekends,  events  (sports,  fairs,  contests) etc.  Besides this, the pricing of airfares is significantly  influenced by  operational  constraints  at  airports.  Routes  experiencing  high tourist  demand,  are  subject  to  limitations  imposed  by  terrain, weather conditions, and restricted operating hours. The

combination of constrained capacity and elevated demand leads to fluctuations in airfares.; ; Furthermore, with continuous engagement with airlines & monitoring of airfares by the government, the airfares have moderated  in  2024  relative  to  2023.  The  airlines  have  also  been sensitized  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.; ; With  the  enhancement  of  capacity  by  induction  of  more  aircraft fleet,  modernization  of  airports  and  development  of  new  airports, domestic passenger traffic has increased to 153,674,310 in 2023-24 as compared to 136,028,656 in the year 2022-23. Even in the current financial year 2024-25 as of October, the domestic passenger traffic has  reached  (93,002,510  surpassing  the  corresponding  figure  of 87,995,187  for  the  fiscal  year  2023-24,  reflecting  an  impressive growth of 5.7%.; ; Directorate  General  of  Civil  Aviation  (DGCA)  has  setup  a  Tariff Monitoring  Unit  (TMU)  that  monitors  airfares  on  select  domestic sectors  on  random  basis  by  using  airlines'  websites  on  monthly basis to ensure that the airlines do not charge airfares outside the range declared by them.; ; The airlines are mandated to display the Tariff Sheet at a prominent location on the home page of airlines' website ;

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.  While  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.;

; 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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