Lok Sabha Question No. 1413 (UNSTARRED), answered on 2025-02-13
Subject: Hike in Airfare
Ministry: CIVIL AVIATION
Asked by: Mr Pathan Yusuf, Ms Sayani Ghosh, Shri Y S Avinash Reddy, Adv Priya Saroj, Dr. M K Vishnu Prasad, Thiru Dayanidhi Maran, Shri Patel Umeshbhai Babubhai, Shri Navaskani K, Adv. Adoor Prakash, Shri N K Premachandran, Shri Rajeev Rai, Shri Janardan Singh Sigriwal, Shri Charanjit Singh Channi

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION

## Lok Sabha

## UNSTARRED QUESTION NO. : 1413 ( TO BE ANSWERED ON THE  13th February 2025 )

## HIKE IN AIRFARE

1413.     MR PATHAN YUSUF

MS SAYANI GHOSH

SHRI Y S AVINASH REDDY

ADV PRIYA SAROJ

DR. M K VISHNU PRASAD

THIRU DAYANIDHI MARAN

SHRI PATEL UMESHBHAI BABUBHAI

SHRI NAVASKANI K

ADV. ADOOR PRAKASH

SHRI N K PREMACHANDRAN

SHRI RAJEEV RAI

SHRI JANARDAN SINGH SIGRIWAL

SHRI CHARANJIT SINGH CHANNI

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether the Government is aware of the recent surge in airfares during festive seasons and peak travel periods across the country, including the recent example of Kumbh, Prayagraj, Uttar Pradesh which leads to make air travel unaffordable for the common people and if so, the details thereof;
- (b) the specific measures being taken by the Government to regulate and control such price hikes, especially for routes connecting Tier-2 and Tier-3 cities;
- (c)  whether  the  Directorate  General  of  Civil  Aviation  (DGCA)  has  issued  any guidelines  to  rationalize  airfares  during  the  said  periods  and  if  so,  the  details thereof;
- (d) whether the Government is considering capping airfares during emergencies, natural disasters and medical emergency to ensure affordability for the passengers and if so, the details thereof;
- (e) whether the Government proposes to amend the Airports Economic Regulatory Authority  (AERA)  Act  to  enhance  oversight  on  fare  increases  and  protect

consumer interests and if so, the details thereof along with the steps taken in this regard;

- (f)  whether  the  Government  proposes  to  fix  the  maximum  ticket  charge  for  a particular destination and if so, the details thereof;
- (g) the amount paid to airlines under Viability Gap Funding to compensate for low fares, year and airline-wise; and
- (h)  the  measures  taken  by  the  Government  to  ensure  transparency  in  airfare pricing and make it mandatory for airlines to disclose fare components clearly?

## ANSWER

Minister  of  State  in  the  Ministry  of  CIVIL  AVIATION            (Shri Murlidhar Mohol) (a) to (d) & (f) & (h): Regular consultations are held with airlines and airlines are sensitized to exercise moderation/ self- regulation while fixing the airfares and to keep  passengers'  interest in mind. As  the festival's  peak  days  approach, especially  during  the  forthcoming  Maha  Kumbh's  and  other  important  Shahi Snans, airlines have taken further steps to enhance capacity to accommodate in order to ease pressure on airfare.; ; The  airfares  to  Prayagraj  for  the  Maha  Kumbh  2025  saw  a  decline  after  govt intervention. ; The airlines have committed to ensure that airfares do not surge during events such as natural disasters, calamities, pandemic, Mahakumbh etc.; ; 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.; ; Rule  135  (2)  of  the  Aircraft  Rules,  1937  requires  airlines  to  display  established tariff  on  their  respective  website  with  a  'single  consolidated  fare'  and  give  its complete break-up also for consumer's benefit.; ; The airlines are mandated to display the Tariff Sheet at a prominent location on the home page of airlines' website.; ; 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.  The  months of May and June experience heightened traffic, with a notable peak in international travel commencing in mid-July, which concurrently influences domestic demand. From July to September, there is typically a decline in  travel  activity  due  to  the  monsoon  season.  Nevertheless,  the  arrival  of  the festive season in October, particularly during the celebration of Diwali, triggers a notable  resurgence  in  travel  demand.  By  mid-January,  travel  demand  begins  to wane, continuing its decline until the final week of April. Following this period, a renewed interest in travel coincides with the summer holidays, contributing to an increase in demand once again.; ; 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.; ; 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.; ; (e): There is no such proposal for regulation of Airfare by AERA. ; (g): The details of amount paid to airlines under Viability Gap Funding, year and airline wise for last 3  years may be seen at Annexure.; ******

|                                                           |                                                                                                 |                                                           |                                                           |                                                           | Annexure                                                  |
|-----------------------------------------------------------|-------------------------------------------------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|
| DETAIL OF VGF DISBURSED TO AIRLINES (YEAR WISE IN CRORES) | DETAIL OF VGF DISBURSED TO AIRLINES (YEAR WISE IN CRORES)                                       | DETAIL OF VGF DISBURSED TO AIRLINES (YEAR WISE IN CRORES) | DETAIL OF VGF DISBURSED TO AIRLINES (YEAR WISE IN CRORES) | DETAIL OF VGF DISBURSED TO AIRLINES (YEAR WISE IN CRORES) | DETAIL OF VGF DISBURSED TO AIRLINES (YEAR WISE IN CRORES) |
|                                                           |                                                                                                 | VGF Disbursed to Airlines                                 | VGF Disbursed to Airlines                                 | VGF Disbursed to Airlines                                 |                                                           |
| SN                                                        | Airline                                                                                         | 2022-23                                                   | 2023-24                                                   | 2024-25                                                   | Total                                                     |
| 1                                                         | AIR ODISHA                                                                                      | 0                                                         |                                                           | 0                                                         | 0                                                         |
| 2                                                         | ALLIANCE AIR (VGF to selected air line operators )                                              | 177.54                                                    | 130.05                                                    | 81.82                                                     | 389.41                                                    |
| 3                                                         | ALLIANCE AIR (VGF to Alliance air for NER & VGF to Alliance air for Dornier operations in NER ) | 148.81                                                    | 204.22                                                    | 121.17                                                    | 474.2                                                     |
| 4                                                         | AIR TAXI                                                                                        | 0                                                         | 3.75                                                      | 8.72                                                      | 12.47                                                     |
| 5                                                         | BIG CHARTERS                                                                                    | 86.63                                                     | 64.52                                                     | 42.2                                                      | 193.35                                                    |
| 6                                                         | DECCAN CHARTERS                                                                                 | 0                                                         | 0                                                         | 0                                                         | 0                                                         |
| 7                                                         | GHODAWAT                                                                                        | 75.17                                                     | 116.76                                                    | 138.19                                                    | 330.12                                                    |
| 8                                                         | GSECMONARCH                                                                                     | 5.94                                                      | 16.83                                                     | 16.32                                                     | 39.09                                                     |
| 9                                                         | HERITAGE                                                                                        | 12.78                                                     | 15.22                                                     | 13.81                                                     | 41.81                                                     |
| 10                                                        | INDIGO                                                                                          | 298.61                                                    | 296.98                                                    | 100.82                                                    | 696.41                                                    |
| 11                                                        | JET AIRWAYS                                                                                     | 0                                                         | 0                                                         |                                                           | 0                                                         |
| 12                                                        | PAWANHANS                                                                                       | 25.5                                                      | 32.52                                                     | 11.92                                                     | 69.94                                                     |
| 13                                                        | SPICEJET                                                                                        | 116.17                                                    | 129.99                                                    | 19.09                                                     | 265.25                                                    |
| 14                                                        | TRUJET                                                                                          | 0                                                         | 0                                                         | 0                                                         | 0                                                         |
| 15                                                        | ZOOMAIR                                                                                         | 0                                                         | 0                                                         | 0                                                         | 0                                                         |
| 16                                                        | Just Udo Aviation P.                                                                            | 0                                                         | 0.4                                                       | 52.59                                                     | 52.99                                                     |
|                                                           | Ltd. TOTAL                                                                                      | 947.15                                                    | 1011.24                                                   | 606.65                                                    |                                                           |