We have no control over flight ticket prices, says government
The government has dealt a significant blow to those waiting for cheaper airfares. It has stated that it has no control over flight ticket prices, although fares may be capped in an emergency.
We have no control over flight ticket prices, says government
Flight prices are skyrocketing during the festive season. There have been constant calls for the government to impose a cap on ticket prices. Now, the government has clearly stated that there will be no control on air ticket prices during normal times. Airlines will continue to determine fares based on demand and supply, as they currently do.
However, the government has said that it is making new airfare rules; there will be power in it. If there is an emergency like a flood, earthquake, corona or any major disaster, then the government will be able to cap the ticket price, so that common people are not looted.
Airline stocks fall sharply.
Speaking to the Economic Times, a senior government official said, "The government has no plans to interfere in the free market system that determines airfares based on demand and supply." This announcement has fueled speculation about government intervention in airline pricing and led to a sharp fall in airline stocks.
According to a new rule from India's aviation regulator, the Directorate General of Civil Aviation (DGCA), all airlines must submit their fare structure one month in advance and display it on their websites. The DGCA will monitor that no airline charges more than the maximum fares submitted.
Speaking to reporters last week, Union Civil Aviation Minister Ram Mohan Naidu said the government was making every effort to keep airfares reasonable and within budget. However, this was proving challenging due to fluctuating aviation fuel prices.
A case is going on in the Supreme Court on airfares.
It's worth noting that a case is also ongoing in the Supreme Court regarding airfare extortion and hidden charges, and the government has informed the court that new rules will be published within two weeks. This means that in normal times, the market will dictate, while in an emergency, the government will provide the necessary support.
