Parliament Question: Cap on Airfares

GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA UNSTARRED QUESTION NO. : 3081 ( TO BE ANSWERED ON THE 6th August 2026 ) CAP ON AIRFARES 3081. SHRI BRIJENDRA SINGH OLA Will the Minister of CIVIL AVIATION be pleased to state:- (a) whether the airfares are increased arbitrarily and excessively during festivals and emergency situations in the country causing unnecessary financial burden on common passengers; (b) if so, whether the Government maintains data on such hikes in airfare indicating the frequency, duration and extent of increase in airfares, if so, the details thereof during the last five years and the current year, year-wise and if not, the reasons therefor; (c) whether the Government is contemplating to regulate airfares, cap maximum fares or implement any effective regulatory mechanism to protect the interests of consumers and if so, the details thereof along with the action taken so far in this regard; and (d) whether small and large airports have been handed over or are proposed to be handed over to private entities under the Public Private Partnership (PPP) model and if so, the details of the provisions made to ensure transparency, competition, public interest and accountability in this process? ANSWER Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar Mohol) (a) to (c): The pricing of airfares is subject to dynamic fluctuations influenced by the 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.; ; With the repeal of Air Corporation Act in March 1994, airfares are not subject to be regulated by the Government. Airlines have the autonomy to establish airfare based on their operational & economic viability on a particular route while adhering to Rule 135 of the Aircraft Rules, 1937.; ; The Government generally refrains from regulating airfares to maintain market competitiveness, however, it retains vigilant oversight role, intervening in exceptional circumstances by redistributing capacity across various sectors and imposing temporary fare caps, such as during the Covid Pandemic, festivals like Maha kumb or other extraordinary instances like Pahalgam incident & the Indigo flight disruptions.; ; 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.; ; (d): As per the National Monetization Pipeline (NMP) 2.0 of Govt of India, airports are proposed for monetization. Selection of the Public Private Partnership (PPP) is done through a transparent open competitive bidding process through online portal. ******