NEW DELHI:
The Centre will not impose a cap on airfares during the upcoming festive season, but airlines will be advised to keep ticket prices at reasonable levels, Civil Aviation Minister K Rammohan Naidu said on Tuesday.
The Minister said the government was in continuous discussions with airlines and would impress upon them the need to maintain reasonable fares during the festive period so that passengers travelling during important occasions were not burdened by excessive ticket prices.
Responding to questions on whether the government planned to impose an airfare ceiling, Mr. Naidu said there would be no such cap. Instead, the government would continue engaging with airlines and advise them to ensure that fares remained reasonable.
He attributed part of the pressure on airfares to rising aviation turbine fuel prices. According to him, ATF accounts for around 40 to 43 per cent of airfares, and even a small increase in fuel costs can directly push up ticket prices.
The Minister said the increase in fuel prices was also linked to the ongoing crisis in West Asia. He pointed out that the higher operating costs faced by airlines were not necessarily a consequence of the festive season alone.
The government’s approach comes ahead of the period when air travel demand normally rises as people travel across the country for festivals and holidays.
While the Centre has chosen not to introduce a fare ceiling, the Minister said airlines were being urged to keep prices at reasonable levels and ensure that passengers received the benefit during the festive season.