Aviation Minister Ram Mohan Naidu told the Lok Sabha on Friday that it is not practical for the government to impose year-round caps on airfares, emphasising that a deregulated aviation market is designed to benefit consumers and support long-term sectoral growth. He noted that ticket prices naturally rise during festive periods because demand peaks on certain routes, making it unrealistic to regulate fares uniformly across all seasons.
Naidu explained that deregulation was introduced to help India’s aviation industry expand, just as it has in countries that witnessed rapid aviation growth. Allowing market forces of demand and supply to operate freely attracts more airlines, fosters competition, and ultimately lowers costs for passengers over time. Even so, he said deregulation does not mean airlines have complete freedom without oversight.
Responding to a private member’s bill calling for price controls in the wake of IndiGo’s massive operational collapse—which caused widespread cancellations and pushed fares sharply upward—Naidu clarified that the government retains legal authority to intervene during extraordinary situations. Under the Aircraft Act, the Centre may cap fares if it detects misuse or exploitation, ensuring travellers are protected from sudden, opportunistic pricing practices.
He pointed out that the government had exercised such powers during crises, including the COVID-19 pandemic, the Maha Kumbh, the Pahalgam terror attack, and the recent IndiGo disruptions. In each instance, fare restrictions were imposed to prevent airlines from hiking prices beyond reasonable levels. Naidu also highlighted the ongoing ‘Fare Se Fursat’ initiative, under which the government and the Alliance of Airlines have fixed prices on 25 routes—particularly in the Northeast and southern states—to maintain affordability.
The minister stressed that regulating airfares is complex, as the government must also preserve the financial health of airlines, airports, and the broader aviation network. Excessive control, he warned, could discourage new players and harm the industry’s long-term stability.
Naidu further argued that when adjusted for inflation, air travel in India has become significantly cheaper over the years. Compared to global trends, India recorded a 43% drop in real airfares, surpassing reductions in countries like the US and China. He added that airlines have been instructed to display government-issued upper and lower fare limits clearly on booking websites to ensure transparency for passengers.
