Ram Mohan Naidu said in Lok Sabha – ‘No limit can be imposed on air fares for the whole year’

New Delhi, 12 December. Civil Aviation Minister Ram Mohan Naidu told the Lok Sabha on Friday that it is not possible for the government to fix fares on air tickets across the country for the whole year. The airline sector is deregulated and in such a market it is the passengers who ultimately benefit.

The airline sector was deregulated to promote the industry.

Ram Mohan Naidu also said that it is a normal thing for ticket prices to increase during festivals and holidays. He explained that when the airline sector was deregulated, the aim was to boost the industry. Even in the countries of the world where the aviation sector has grown rapidly, there have been free markets (deregulated markets). Due to this, more companies come into the market, competition increases and new avenues of cooperation open up.

Naidu said, ‘When you let the market work its way and let the process of demand and supply take place, in the end it is the passengers who get the biggest benefit.’ Responding to a private member’s bill seeking to control air fares, the Civil Aviation Minister clearly said that for the growth of the sector, it is necessary to keep it deregulated. If India wants to take civil aviation forward, then first of all it is important that the market remains open so that more and more airlines can enter it and there is competition.

The government still has full power to intervene if necessary.

He also clarified that this does not mean that airlines have complete freedom. He said that the government has enough powers and can intervene if needed. That means the market is certainly open, but control has not been completely removed. He said that even though the air fare market in India is deregulated, the government still has full power to intervene if necessary.

He said that under the Aircraft Act, the central government can take action in special circumstances — such as when airlines take unfair advantage and start charging higher fares from passengers. In such a situation, the government can also set an upper limit on fares so that people do not have to bear the burden of expensive tickets.

This Private Member Bill and the Minister’s reply have come at a time when air fares had suddenly increased across the country due to recent flight cancellations and reduced capacity. The government immediately intervened, calling it ‘opportunistic pricing’ and imposed a fare slab on airlines to prevent them from selling tickets at arbitrary prices.