New Delhi: The Centre cannot impose a permanent cap on airline ticket prices as fluctuations in seasonal demand make such regulation impractical, Union Civil Aviation Minister Ram Mohan Naidu told the Lok Sabha. Speaking amid concerns over sharp fare hikes during festival seasons and in the backdrop of the recent IndiGo-related crisis, the minister said airfares rise only during specific peak periods, not on a daily basis.
He clarified that the government does step in during “extraordinary circumstances” to control fares, citing situations such as the Covid-19 pandemic, the Maha Kumbh Mela, the Pahalgam attack and the recent IndiGo crisis, when regulatory powers were exercised. However, he stressed that continuous price control is neither feasible nor desirable.
Highlighting the need for a competitive and expanding civil aviation sector, the minister said growth depends on encouraging competition and attracting more players by removing unnecessary regulations. Using Kerala’s Onam season as an example, he explained that fares surge when travel demand concentrates in a particular region during a specific period. Ultimately, he said, airfares are naturally regulated by market demand and availability, not by year-round government intervention.
