Parliament Question: Fixing of maximum ceiling on domestic airfares to regulate dynamic pricing

GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION RAJYA SABHA UNSTARRED QUESTION NO. : 171 TO BE ANSWERED ON THE 2nd February 2026 FIXING OF MAXIMUM CEILING ON DOMESTIC AIRFARES TO REGULATE DYNAMIC PRICING 171. DR. KANIMOZHI NVN SOMU Will the Minister of CIVIL AVIATION be pleased to state:- (a) whether Government has fixed any maximum ceiling/capping on domestic air fares to regulate dynamic pricing adopted by airlines based on demand & supply conditions; (b) if so, the details thereof; (c) if not, the reasons for not prescribing such a ceiling; and (d) the measures taken to protect passengers from excessive fare volatility on domestic routes? ANSWER Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar Mohol) (a) to (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. While 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 Kumbh & Pahalgam attack, in order to ensure air travel affordable for passengers. Recently, in view of massive flight disruptions in early December, 2025 by one of the scheduled domestic airlines & abnormal surge in airfares, the Government vide order dated 6th Dec, 2025 has temporarily capped maximum fare (stage length wise) to be charged by scheduled domestic airline operators.Further, to enhance 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, under the provision of sub-rule (2) of Rule 135 of the Aircraft Rules, 1937. This covers about 27% of the domestic traffic. ******