**Executive Summary**
This document is an answer to Unstarred Question No. 3050, addressed in the Lok Sabha and slated for the 18th of December 2025, regarding airfare regulation during festive seasons. It clarifies the government's stance on airfare regulation and outlines the mechanisms in place to monitor and address excessive pricing.
**Key Points / Main Content**
* **Government Position on Airfare Regulation:**
* Airfares are not directly regulated by the Government.
* Airlines have the flexibility to set fares based on operational needs, adhering to Rule 135 of the Aircraft Rules, 1937.
* Pricing is influenced by supply and demand, seat occupancy, fuel costs, aircraft capacity, and seasonal factors.
* **Government Intervention:**
* The government generally refrains from airfare regulation to maintain market competitiveness.
* It intervenes in exceptional circumstances, such as during pandemics or major flight disruptions.
* Intervention may involve temporary fare caps or capacity redistribution.
* **Tariff Monitoring Unit (TMU):**
* The Directorate General of Civil Aviation (DGCA) established the TMU.
* The TMU monitors airfares on 78 routes (27% of domestic traffic) on a random monthly basis using airline websites.
* It ensures airlines do not charge fares outside their declared range.
* The TMU plays a critical role in maintaining airfare levels within airlines' prescribed tariffs.
**Impact Analysis**
**Airlines**
* **Impact:** Airlines maintain flexibility in setting fares based on operational needs within the bounds of their prescribed tariffs.
* **Action Required:** Adhere to Rule 135 of the Aircraft Rules, 1937 and the need to remain within the boundaries of their prescribed tariffs.
**Passengers**
* **Impact:** Passengers benefit from a competitive market with government intervention to prevent excessive pricing during exceptional circumstances.
* **Action Required:** None explicitly stated, but awareness of the TMU's role in monitoring airfares may be relevant.
Key Entities Referenced
Directorate General of Civil Aviation (DGCA): Regulator responsible for overseeing airfare transparency.
Tariff Monitoring Unit (TMU): Unit within DGCA that monitors airfares on selected routes.
Ministry of Civil Aviation: The central ministry responsible for matters pertaining to civil aviation in India.
Aircraft Rules, 1937: Rules governing the operation of aircraft, specifically Rule 135 is referenced regarding airfare determination.
GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
LOK SABHA
UNSTARRED QUESTION NO. : 3050
( TO BE ANSWERED ON THE 18th December 2025 )
AIR FARE REGULATION FOR FESTIVE SEASONS
3050. SHRI K C VENUGOPAL
Will the Minister of CIVIL AVIATION
be pleased to state:-
(a) whether the Government has any plans to introduce regulatory measures such as capping or
controlling airfares during school vacations and peak festival seasons for both domestic and
international flights, particularly in view of the upcoming Christmas and New Year period in
December 2025-January 2026 and if so, the details thereof;
(b) the details of airfare trends and fare surges observed during previous festive seasons during the
last three years;
(c) whether any directives for maintaining rigorous oversight on fares are in place and if so, the
specifics thereof including monitoring mechanisms and penalties for non-compliance; and
(d) if not, the reasons therefor along with the alternative steps proposed to be taken to ensure
affordable air travel during peak periods without compromising airline viability?
ANSWER
Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar Mohol)
(a) & (d): Airfares are not subject to regulation by the Government and airlines have the flexibility to
determine their airfares based on their operational needs, while adhering to Rule 135 of the Aircraft
Rules, 1937. ;
;
The pricing of airfares is subject to dynamic fluctuations influenced by the fundamental economic
forces of supply and demand. Various determinants such as current seat occupancy, fuel costs, aircraft
capacity, seasonal fluctuations and other relevant factors significantly impact airline ticket pricing.;;
;
The government generally refrains from regulating airfares to maintain market competitiveness,
however, it remains vigilant oversight role, intervening in exceptional circumstances, such as during
Pandemic, Maha kumb, Pahalgam attack in Srinagar & recently massive flight disruptions by Indigo
airline.;;
;
In such instances, Government imposed temporary fare caps or redistribute capacity across various
sectors to mitigate excessive pricing, ensuring the comfort and welfare of passengers.;
;
In order to enhance the transparency in airfare, Directorate General of Civil Aviation (DGCA) has set-
up Tariff Monitoring Unit (TMU) that monitors airfares on selected 78 routes on a random basis by
using airlines websites on monthly basis to ensure that the airlines do not charge airfares outside the
range declared by them. This covers about 27% of the domestic traffic. By doing so, the TMU plays a
critical role in maintaining airfare levels within the boundaries of the airlines' prescribed tariffs.;******