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Aviation Minister Kinjarapu Rammohan Naidu said in the Lok Sabha that the government puts a cap on air fares including IndiGo when necessary, like it was done during the Kumbh Mela, Pahalgam attack and Covid-19.
New Delhi. The government can curb the price of plane tickets at any time. This is what Aviation Minister Kinjarapu Rammohan Naidu has to say. Speaking on the Indigo issue in the Lok Sabha on Friday, he presented the government’s side. He said- The government promotes de-regulation in the aviation sector so that this industry can progress rapidly. But if necessary, it also imposes a cap on the price of tickets, i.e. for a certain time. He also gave examples of three such occasions when the government imposed a cap on air fares. According to the Union Minister, the government prevented the prices from increasing wildly during the Kumbh Mela, after the terrorist attack in Pahalgam and also during the Covid-19 pandemic.
Talking about Indigo, he said that the government intervened in this situation also. He said that even when the Indigo crisis came, it seemed that prices might increase. According to the minister, many flights were cancelled, airlines were not able to operate on many routes because they did not have enough capacity. According to the minister, at such a time the government again came forward and controlled the prices. He said that airlines were ordered to decide this fare on the basis of distance.
Rent monitoring unit
Taking a big step regarding air fare control, the Central Government has created a special tariff monitoring unit in DGCA. Civil Aviation Minister Ram Mohan Naidu told Parliament that this unit will continuously monitor the fares of the airlines and ensure that the companies charge the fares only as per their approved tariff sheet. The minister said that this initiative has been taken at a time when people are demanding more transparency in air fares. The government claims that the new monitoring unit will increase transparency, strengthen passenger confidence and airlines will also fix fares within a fixed framework. This step is being considered as a big start to organize the aviation market and protect consumer interests.
Work on public feedback
Naidu said that the ministry is continuously receiving feedback from the public and his team is working on every input. He said that the working style of the Center under the leadership of Prime Minister Narendra Modi has been to listen to the public and make policy reforms on that basis. According to the minister, this unit will also keep an eye on market manipulation and irregular changes so that passengers are not burdened with sudden increase in fares.
Fixing the rent is not a solution
He clearly said that it is not possible to fix the fare on any route for the whole year. The airline sector completely runs on demand and supply and these two factors control the ticket prices. According to the minister, fixing fares on any route throughout the year will affect the market dynamics and airlines will face difficulties in operating.
States should charge ATF
The Union Minister said that 35-40 percent of the fare in air travel is ATF i.e. Aviation Turbine Fuel. In simple language, it is the petrol of the ship. He said that state governments impose heavy fees on this. The Union Minister also urged the states to reduce the duty on ATF so that the price of tickets can be further reduced.
