Lok Sabha Question No. 5469 (UNSTARRED), answered on 2025-04-03
Subject: Hike in Airfares
Ministry: CIVIL AVIATION
Asked by: Dr. T Sumathy Alias Thamizhachi Thangapandian

## GOVERNMENT OF INDIA

## MINISTRY OF CIVIL AVIATION

Lok Sabha

UNSTARRED QUESTION NO. : 5469

( TO BE ANSWERED ON THE  3rd April 2025 )

## HIKE IN AIRFARES

5469.    DR. T SUMATHY ALIAS THAMIZHACHI THANGAPANDIAN Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether it is true that the Government has no control over the airfares fixed by airlines and if so, the details thereof;
- (b)  whether  the  Government  proposes  to  constitute  a  high-level committee  to  look  into  the  issues  of  dynamic  pricing  leading  to exorbitant  air  ticket  prices  on  certain  domestic  and  international routes, if so, the details thereof and if not, the reasons therefor;
- (c) whether the airline ticket prices are determined by the demand
- and supply theory and if so, the details thereof; and
- (d) the proactive steps taken by the Government to improve demand and supply by increasing the number of airlines and seats available on such routes where the demand is very high?

## ANSWER

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

- (a) to (d): Airlines determine their airfares based on their operational needs,  while  adhering  to  Rule  135  of  the  Aircraft  Rules,  1937. Airfares are not subject to regulation by the Government.;

;

- 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 data on monthly basis to ensure that the airlines do not charge airfares outside the range declared by them.;

; Enhancement  of capacity through the induction of additional aircraft  fleets,  the  modernization  of  existing  airports,  and  the development of new airports have rendered air travel more accessible to the general public. This expansion has consequently led to a significant increase in domestic air traffic, as evidenced by the  rise  in  passenger  volumes  from  70  million  in  the  fiscal  year 2014-15 to 153 million in the fiscal year 2023-24.This upward trend continues  in  2024-25.  Further,  the  Indian  airlines  have  placed  an order for around 1150 new aircraft in last 02 years.; ; With  continuous  engagement  with  airlines  &  Online  Ticketing Agents (OTAs) and keeping a watch on the movement of airfares, the  airfares  have  moderated  in  2024  relative  to  2023  on  sectors monitored by DGCA.; ; To  maintain  market  competitiveness,  the  Government  remains vigilant and intervenes to shift capacity from one sector to another to  prevent  exorbitant  pricing  to  ensure  passenger  comfort  and welfare.; ; 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.;

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