Govt Cannot Impose Year-Round Airfare Cap, Festival Price Surge Normal: Union Civil Aviation Minister K Ram Mohan | India News

Union Civil Aviation Minister K Ram Mohan Naidu on Friday told Parliament that the government cannot impose caps on airfares throughout the year, stating that ticket price increases during festival seasons are a normal market phenomenon.

Responding to demands for stricter regulation of airline pricing, Aviation Minister Naidu said the Center has the authority to cap fares only under special circumstances, citing the recent intervention during IndiGo’s operational disruptions as an example.

“The government cannot impose airfare caps for the entire year. During festival seasons, ticket prices generally increase, and this is a normal occurrence,” the minister said while addressing the Lok Sabha.

However, he clarified that this does not mean that companies have been given complete immunity. The central government retains sufficient powers to intervene if necessary.

Aviation Minister Naidu said that even though the market is deregulated, the current Aircraft Act gives the central government full authority to intervene and correct the situation in exceptional circumstances when abuse is suspected. This includes imposing fare caps to prevent opportunistic overcharging of passengers.

Deregulation Benefits Passengers: Minister

Responding to a private member’s bill seeking deregulation of airfares, Naidu said if we really want to grow the civil aviation sector, the first and foremost condition is to keep it deregulated so that more companies can enter the market.

“When deregulation was introduced, the primary objective was to promote growth in the aviation sector. Countries that have experienced significant growth had deregulated markets,” he said.

The minister explained that deregulation opens the market to more players, promotes competition, and helps stabilize pricing to ensure benefits reach passengers.

Recent Fare Cap Intervention: Key Points

1. Govt Invokes Special Powers
The Civil Aviation Ministry imposed temporary fare caps after unusually high ticket prices were reported during IndiGo’s operational disruption caused by grounded aircraft.

2. Reason for Intervention
Authorities said they took “serious note” of excessive fares charged by certain airlines amid the ongoing crisis affecting flight schedules.

3. Temporary Fare Limits (Applicable Until IndiGo Normalises Operations)

Up to 500 km: Max fare capped at ₹7,500

500–1,000 km: Max fare capped at ₹12,000

1,000–1,500 km: Max fare capped at ₹15,000

Above 1,500 km: Max fare capped at ₹18,000

4. Charges Not Included in the Cap

The caps exclude:

User Development Fee (UDF)

Passenger Service Fee (PSF)

Applicable taxes

5. Where the Caps Do Not Apply

Business Class tickets

RCS-UDAN flights

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