Civil Aviation Minister K Rammohan Naidu, on Friday, clarified that the the government has exclusive powers in extraordinary circumstances to cap airfares, amid rising fears of high air ticket charges in the wake of the IndiGo crisis.
The minister, however, noted that this is not a one-way solution while replying to a debate on a private member's resolution on 'Resolutions: Appropriate Measures to Regulate Airfare in the Country' in the Lok Sabha.
Earlier this month, the civil aviation ministry imposed a distance-based cap on domestic airfares in the wake of the IndiGo flight disruptions.
The minister pointed out that domestic air ticket pricing remains "on par with other nations," and it would not be feasible for the government to cap airfares across the nation.
He pointed out that a deregulated market benefits consumers, and that ticket prices usually increase during festive seasons. The minister also emphasised that deregulation remains central to the growth of civil aviation.
"If we want the civil aviation sector to grow, the first and foremost requirement is to keep it deregulated so that more players can enter the market."
However, the minister also said that deregulation does not give the airlines a free hand and the government retains powers to intervene when needed.
Naidu said that state-owned Alliance Air has started a three-month pilot scheme of fixed airfares, and after looking into how much it has benefited passengers as well as the feedback, the ministry might also consider a similar plan for private airlines.
Stressing that capping airfares is not a "single-way solution", the minister said in comparison with other countries, the rate of growth in airfares in India has been negative, in relative and real terms.
"There has been a 43 per cent decrease in airfares when you consider the Consumer Price Index (CPI), inflation...," he said and added that airfares are affordable.
He, however, did not mention the time frame for the comparison.
"The government has exclusive powers in extraordinary circumstances when they feel that when airfares are rising above the normal and becoming abnormal, we are taking it up...," Naidu said.
Congress member Varsha Gaikwad claimed air travel is not affordable to common people. "There is loot in airfares... A ticket that earlier used to cost around ₹5,000 to ₹6,000 now costs ₹25,000 to ₹30,000. There are several hidden charges which are imposed on air ticket bookings. Several airlines have closed down or merged, which has led to a monopoly of airlines and the repercussions of which are faced by the public, an example of which we all saw last week," she observed.
Samajwadi Party MP Ramashankar Rajbhar said that when some companies have control of operations, they decide the fares as per their own will, which leads not just to competition but fear of overpricing.
—With PTI inputs
