**Executive Summary**
This document addresses Unstarred Question No. 721, to be answered on December 4th, 2025, regarding the increase in airfares during festive seasons and emergency periods. It states that the Government does not regulate airfares but actively monitors and intervenes in exceptional circumstances. The DGCA has established a Tariff Monitoring Unit (TMU) to ensure airfares remain within prescribed limits.
**Key Points / Main Content**
* **Airfare Regulation:**
* Airfares are not directly regulated by the Government.
* Airlines have flexibility in setting fares based on operational needs, adhering to Rule 135 of the Aircraft Rules, 1937.
* Airfare pricing is influenced by supply, demand, seat occupancy, fuel costs, aircraft capacity, and seasonal fluctuations.
* **DGCA's Role:**
* The DGCA ensures airfares stay within established tariff sheet boundaries.
* In cases of non-adherence to Sub Rule (2) of Rule 135 of The Aircraft Rules, 1937, directions are issued to airlines.
* **Government Intervention:**
* The Government generally refrains from regulating airfares but intervenes in exceptional circumstances like pandemics or attacks.
* The Government advises airlines to augment capacity with additional flights during high-demand periods.
* **Capacity Augmentation:**
* Airlines increased capacity by 1750 flights across 100 sectors in October 2025.
* This capacity increase led to a moderation in fares across most sectors.
* **Tariff Monitoring Unit (TMU):**
* DGCA has set up TMU to enhance transparency.
* TMU monitors airfares on 78 routes randomly, using airlines' websites monthly.
* It ensures airlines do not exceed declared fare ranges under sub-rule (2) of Rule 135 of the Aircraft Rules, 1937, covering ~27% of the domestic traffic.
**Impact Analysis**
**Impact: Airlines**
* Airlines retain autonomy over airfare pricing, adhering to specific regulations.
**Action Required**
* Airlines must adhere to Rule 135 of the Aircraft Rules, 1937.
* Airlines must comply with directions issued by the DGCA in cases of non-adherence to Sub Rule (2) of Rule 135.
* Airlines should consider augmenting capacity during peak demand periods.
* Airlines must ensure their airfares fall within the boundaries of the TMU guidelines.
**Impact: Passengers**
**Impact**
* Passengers are affected by fluctuations in airfares due to market conditions.
* Passengers benefit from Government interventions during exceptional circumstances, ensuring affordable air travel.
* Passengers potentially benefit from increased capacity and resulting fare moderation during peak seasons.
**Action Required**
* No specific action required.
Key Entities Referenced
Aircraft Rules, 1937: Rules governing the operation and pricing of airfares, specifically Rule 135 which is referenced in the context of airfare regulation.
Directorate General of Civil Aviation (DGCA): Ensures airlines charge airfares within established boundaries and has set up a Tariff Monitoring Unit (TMU).
Ministry of Civil Aviation: The government body responsible for civil aviation matters.
Tariff Monitoring Unit (TMU): A unit set up by DGCA to monitor airfares on selected routes to ensure compliance with declared fare ranges.
GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
LOK SABHA
UNSTARRED QUESTION NO. : 721
th
(To be answered on the 4 December 2025)
HIKE IN AIR FARE DURING FESTIVAL SEASONS
721. SMT JUNE MALIAH
Will the Minister of CIVIL AVIATION be pleased to state:-
(a) whether the Government is aware of sharp increase in airfares during festive
seasons and emergency periods and if so, the details thereof; and
(b) whether any cap or algorithmic regulation is being considered and if so, the
details thereof?
ANSWER
Minister of State in the Ministry of CIVIL AVIATION
(Shri Murlidhar Mohol)
(a) and (b): 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.
Directorate General of Civil Aviation (DGCA) ensures that the airfare charged by
the airlines remain within the boundaries of the established tariff sheets. However,
in exceptional circumstances of non-adherence to Sub Rule (2) of Rule 135 of The
Aircraft Rules, 1937, necessary direction are issued to all concerned airlines.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.
Further, the Government, proactively engages with scheduled airlines and advises
them to augment capacity by deploying additional flights during festival seasons or
during events causing surge in demand. In October 2025, to meet high festive
demand, airlines responded by augmenting flight capacities by announcing 1750
additional flights across 100 sectors. As a result of capacity increase, a general
moderation in fares was observed across most of the sectors. This proactive approach
serves to mitigate abrupt price surges that may arise from local events or force
majeure conditions.
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, under the
provision of sub-rule (2) of Rule 135 of the Aircraft Rules, 1937. 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.
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