New Delhi: The Central Government reiterated in the Lok Sabha on Thursday that domestic airfares in India will remain deregulated, affirming that airlines hold full commercial autonomy to determine ticket pricing based on market conditions. Responding to a written query by Lok Sabha Member of Parliament Sukhdeo Bhagat, Minister of State for Civil Aviation Murlidhar Mohol clarified that the executive branch does not intend to introduce widespread fare caps, framing market forces as the primary determinant for route viability and ticket costs.
The Ministry of Civil Aviation pointed out that the domestic aviation sector has operated under a deregulated framework since the repeal of the Air Corporations Act in 1994. Under Rule 135 of the Aircraft Rules, 1937, commercial airlines are legally authorized to fix their tariffs after considering operational expenses, service characteristics, and reasonable profit margins. While acknowledging market consolidation following the operational shutdown of major carriers like Jet Airways and Go First, the government refrained from offering a specific assessment on fare hikes since 2022, highlighting instead that the Competition Commission of India maintains statutory oversight to curb anti-competitive practices and market dominance abuses.
Despite maintaining a hands-off approach to direct price regulation, the government emphasized that it retains operational oversight to prevent predatory pricing during extraordinary circumstances. The Directorate General of Civil Aviation actively utilizes a specialized Tariff Monitoring Unit to track ticket prices across 78 selected domestic routes each month, ensuring published tariffs remain within declared price bands. Officials noted that emergency interventions remain reserved for severe market distortions—such as past temporary measures deployed during the COVID-19 pandemic, major pilgrimage events like the Maha Kumbh, and unexpected operational disruptions—while urging passengers to report pricing grievances through the dedicated AirSewa platform.
