Lok Sabha Question No. 70 (STARRED), answered on 2023-12-07
Subject: Hike in Airfare from Middle East Countries
Ministry: CIVIL AVIATION
Asked by: Suresh Kodikunnil

## GOVERNMENT OF INDIA

## MINISTRY OF CIVIL AVIATION LOK SABHA STARRED QUESTION NO. : 70

(To be answered on the 7 th  December 2023)

## HIKE IN AIRFARE FROM MIDDLE EAST COUNTRIES

## *70. SHRI KODIKUNNIL SURESH

Will the Minister of CIVIL AVIATION

Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether the Government is aware of exorbitant hikes in air fare for flights operating from Middle East and Gulf countries including Saudi Arabia, Kuwait, Oman, Dubai and Bahrain to India;
- (b) if so, the steps being taken to address the hike;
- (c) whether the Government has taken steps including introduction of Udaan model of flight along with more international flight services for reducing rates as rate hikes are affecting the expatriates and their ability to travel and if so, the details thereof;
- (d) whether the Government has received any proposals or recommendations from State Governments especially Kerala  for introduction of a State Government owned airline or for chartered airline service and if so, the details thereof; and
- (e) whether the Government has accorded permissions for the same and if so, the details thereof?

## ANSWER

(Shri Jyotiraditya M. Scindia)

- (a) to (e)  A statement is laid on the table of the Lok Sabha.

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Statement referred in reply to Part (a) to (e) of Lok Sabha Starred Question No.70 regarding "Hike in Airfare from Middle East Countries" to be answered on 07.12.2023. (a) & (b) As per prevailing regulations, (i) The airfare is market driven and is neither regulated nor established by the Government. The airlines are free to fix tariffs under the provisions of sub-rule (1) of Rule 135 of the Aircraft Rules, 1937 having regard to all relevant factors, including cost of operation, characteristics of services, generally prevailing tariff etc. (ii) The airline fare system runs in multiple levels (buckets or Reservation Booking Designators) which are in line with practice being followed globally. The fares  are  fixed  by  airlines  keeping  in  mind  the  market,  demand, seasonality, prevailing international scenarios and other market forces. The airfare increases with increase in demand of seats as the lower fare buckets get sold out faster and move to higher fare buckets. (iii)    The  airlines  are  required  to  be  compliant  with  the  regulatory provisions under Aircraft Rules, 1937. (c) At present there is no proposal under consideration for operation of international flight services between India and Middle East/ Gulf countries under Udan like model. (d) In the recent past, the Government has received references including from the Chief Minister of Kerala requesting necessary approvals for charter flights to be operated for transport of non-resident Keralites from Gulf countries to India. (e) Charter flights are generally approved by DGCA under the Inclusive Tour Package (ITP) guidelines. Flights not covered under the ITP guidelines are examined on case to case basis by this Ministry. However, there is no specific request for operation of charter aircraft on India-Gulf sector with this

Ministry as of 28.11.2023.

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