Parliament Question: Airfare regulation on middle east routes

GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION RAJYA SABHA UNSTARRED QUESTION NO. : 3385 TO BE ANSWERED ON THE 23rd March 2026 AIRFARE REGULATION ON MIDDLE EAST ROUTES 3385. DR. JOHN BRITTAS Will the Minister of CIVIL AVIATION be pleased to state:- (a) whether Government proposes to introduce appropriate regulatory measures, including the imposition of fare caps on Middle East routes, to curb seasonal profiteering and prevent predatory pricing or oligopolistic practices by airlines, on the lines of the action taken in imposing immediate caps on domestic airfares following the IndiGo operational disruption; (b) if so, the details thereof; and (c) if not, the reasons therefor? ANSWER Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar Mohol) (a) to (c): Airfares are market driven and under the provisions of Rule 135(1) of the Aircraft Rules, 1937, airlines are free to fix tariffs, having regard to all relevant factors, including cost of operation, characteristics of services, generally prevailing tariff etc. The airline fare system runs in multiple levels (buckets or Reservation Booking Designators) which are in line with practice being followed globally. The fares are fixed by airlines keeping in mind the market, demand, seasonality, prevailing international scenarios and other market forces. The airfare increases with increase in demand of seats as the lower fare buckets get sold out faster and move to higher fare buckets. DGCA's Tariff Monitoring Unit (TMU) ensures that the fares being charged by the airlines are as per the tariff established by the airlines. ******