Government Declares 'No Plan to Regulate Airfares' but Urges Airlines to Exercise Moderation in Ticket Pricing
The government has recently declared that there is no plan to regulate airfares in the near future. However, it has urged airlines to exercise moderation in ticket pricing and ensure that customers are not overcharged. This move by the government comes after several complaints of high airfare prices and lack of transparency in airline pricing policies.
The government has also called on airlines to be more flexible with their ticket prices and provide discounts or other incentives for customers who are facing financial difficulties due to the pandemic. This is an important step taken by the government as it will help customers save money on their travel expenses while still ensuring that airlines can remain profitable during this difficult time.
According to the most recent official statistics, domestic airlines carried 128.88 lakh passengers in April.
The cost of travel has significantly increased on some routes where Go First was active.
For instance, according to data provided by travel website Ixigo, the average one-way spot fare on the Delhi-Leh route increased by 125% to an average of Rs 13,000 during the month of May 3–10 compared to the period of April 20–28.
According to the data, the average one-way spot fare on the Delhi-Srinagar route increased by 86% during the same comparable periods to Rs 16,800.
Airfares are determined by the market; they are neither regulated nor fixed by the government. Airlines are free to set acceptable rates, taking into account all pertinent elements, such as operating costs, service characteristics, and a reasonable profit. However, as long as the fare charged by airlines does not exceed the fare set and advertised on their website, they continue to comply with the regulatory requirements under the 1937 Aircraft Rules, the Minister added.
According to the Minister, there are currently no plans to change the legal framework that governs air travel. The Minister said that the increase in ATF was largely to blame for the current fare increase. From INR 32,000/KL in April 2020 to INR 131,000/KL in June 2022, the ATF has increased.
👍Anushree Shinde [ MBA]
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