NEW DELHI: Union Civil Aviation Minister Ram Mohan Naidu on Monday said that his ministry is monitoring airfares daily and asking airlines not to exploit passengers during the festival season when demand tends to surge.
“We are in constant communication with airline operators, advising them to maintain reasonable airfares,” said Naidu on the sidelines of a FICCI event.
Naidu added that airfare determination is market-driven, making it impossible to impose a cap.
“So far, we have not observed any unreasonable fare increases…If unexpected spikes occur, we will take appropriate action,” added the minister.
The minister also said his ministry is looking at the issues being faced by private carrier SpiceJet. “We are looking at SpiceJet... with the demand we have, we need more airlines to operate. So we are trying to have a balance and address the problems and (ensure the) airline runs properly,” he said.
Cash-starved SpiceJet is grappling with multiple financial and legal issues. Adding to its trouble, the Directorate General of Civil Aviation (DGCA) has placed the airline under enhanced surveillance that will entail increased spot checks and night surveillance to ensure the safety of the airline’s operations.
The minister also said that the regional connectivity UDAN (Ude Desh ka Aam Naagrik) scheme will be extended for 10 more years. The regional connectivity scheme is to end in 2027.