NEW DELHI: Air ticket prices must remain within a certain limit and the government have conveyed this concern to airlines, said Union Aviation minister Jyotiraditya Scindia on Wednesday as airfares have surged up to 10 times on select routes after the grounding of private carrier Go First in the peak summer travel season.
“We cannot have prices way beyond what should rationally be done, specifically when we have certain instances take place, such as the Go First situation or other calamities or extenuating circumstances,” the minister said in an event which highlighted the achievements of aviation sector since 2014.
On the ongoing Go First insolvency proceeding, Scindia said that the aviation regulator DGCA is currently assessing the flight resumption plan submitted by the bankrupt airline. Scindia’s comment on airfares came after he held a meeting with the representatives of airlines on Monday and asked them to self-regulate ticket prices, especially on routes where a big vacuum is created due to the grounding of Go First.
The minister acknowledged the economic woes of passengers and said that the airlines must be proactive in terms of monitoring airfares as opposed to being reactive after his ministry or the regulator steps in. Scindia, however, ruled out the imposition of airfare bands and reiterated that the civil aviation industry of India is a deregulated sector and fares are market-determined.
“The airline pricing system runs in multiple levels which are in line with practices followed globally. The prices are fixed by airlines keeping in mind the market, demand, seasonality and other market forces. Airfare increases with an increase in demand for seats as the lower fare buckets get sold out faster...” he said.
The minister claimed that post the recent advice to airlines to self-monitor, airfares have seen a noticeable drop on some routes. “The maximum prices in the Delhi-Srinagar route, the Delhi-Leh route, the Delhi-Pune route, and the Delhi-Mumbai route had dropped between 14% and 61%. The DGCA and my ministry are monitoring airfares on a daily basis,” said Scindia.
Airfares have skyrocketed since the grounding of cash-strapped Go First on May 3. The carrier, which is going through insolvency proceedings, used to carry 8-9 lakh passengers per month.