Top News

Recently, due to technical problems to IndiGo Airlines and sudden increase in demand, there was a huge jump in the fares of domestic flights. Seeing this problem being faced by the passengers, the government has now come into action. The Ministry of Civil Aviation has indicated that soon there will be a price hike on domestic air fares. Airfare Cap This can be imposed so that passengers can be protected from arbitrary prices. This step has brought great relief to those passengers who had to buy expensive tickets even in emergency situations.

Preparation to control skyrocketing rents

Over the past few weeks, many major domestic routes had seen unprecedented increases in airfares ranging from 50% to 100%. One-way fares on Delhi-Mumbai, Bengaluru-Chennai and other busy routes had reached Rs 20,000. This was mainly due to operational constraints of some airlines and weather- disruptions, which upset the balance of demand and supply.

A senior official of the Civil Aviation Ministry said that the government is considering the situation as ‘serious’. According to the official, “Although the market is allowed to function freely, it is our responsibility to protect the interests of consumers in case of crisis.”

What is the government’s plan?

According to sources, the government is considering setting an upper limit on dynamic pricing for busy routes and special situations where fares increase abnormally.

1. Implementation of Airfare Cap: This capping would be implemented during distressed periods (such as a major operational failure of an airline, or a natural disaster).

2. Cap at fixed distance: The maximum price may be set depending on the duration of flights under the initial plan (for example, flights from 40 minutes to 60 minutes or flights longer than 120 minutes).

3. DGCA monitoring: The Directorate General of Civil Aviation (DGCA) has been directed to keep a close watch on the pricing system of all airlines and take immediate action on any excessive ‘predatory pricing’.

Relief news for passengers

Common passengers will get the biggest benefit from this proposed price limit. Experts believe that this move will provide great relief especially to people with festive season or unexpected travel needs.

Mr Ramesh Gupta, an expert on air travel, said, “This step is commendable. Even during the Covid-19 pandemic, the government had imposed a fare cap for some time, which helped in controlling the volatility. This new rule will prevent airlines from increasing prices arbitrarily, no matter what the demand is.”

What next?

The ministry has convened a high-level meeting with representatives of all major airlines to discuss the implementation of this capping and measures to address the inconvenience caused to consumers. It is expected that the government may officially announce the maximum price cap in the next few days, which will make domestic air travel more stable and affordable soon.