This document summarizes key points from Lok Sabha Unstarred Question No. 4815, answered on August 21, 2025, by the Minister of State in the Ministry of Civil Aviation, Shri Murlidhar Mohol.
Regarding domestic airfares, the Ministry clarified that these are not regulated by the government. Airlines determine fares based on operational needs, adhering to Rule 135 of the Aircraft Rules, 1937.
Post-privatization, Air India has implemented measures to enhance operational efficiency, including fleet upgrades, mergers, new route additions, and IT overhauls. Workforce modernization efforts involve hiring, contract reshaping, and exit options for untenured staff, resulting in a younger, skilled employee base aligned with private-sector performance metrics. Policy changes aim to boost retention, such as raised retirement ages.
The Government of India's Greenfield Airports (GFA) Policy, 2008, has led to in-principle approval for 24 new Greenfield airports nationwide. Currently, Noida International Airport in Uttar Pradesh is under development.
Kushinagar Airport in Uttar Pradesh, owned by the Airports Authority of India (AAI), is operational, although it currently lacks scheduled operations. Since the deregulation of Indian domestic aviation in March 1994, airlines have the autonomy to introduce air services to and from any airport based on operational and commercial viability.
Key Entities Referenced
Ministry of Civil Aviation: A ministry within the Government of India responsible for the formulation of national policies and programmes for the development and regulation of the Civil Aviation sector.
Shri Ramashankar Vidharthi Rajbhar: A member of Lok Sabha who raised a question regarding the increase in airfare of domestic flights.
Air India: The former flag carrier airline of India, which has undergone privatization.
Uttar Pradesh: A state in India where new international or domestic airports are planned, including Noida International Airport and Kushinagar Airport.
Bihar: A state in India where new international or domestic airports are planned.
Jharkhand: A state in India where new international or domestic airports are planned.
Kushinagar Airport in Uttar Pradesh: An airport in Uttar Pradesh, owned by the Airports Authority of India, that has been operationalized but currently has no scheduled operations.
Greenfield Airports GFA Policy, 2008: A policy formulated by the Government of India for the development of new Greenfield airports in the country.
GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
LOK SABHA
UNSTARRED QUESTION NO. : 4815
( TO BE ANSWERED ON THE 21st August 2025 )
INCREASE IN AIRFARE OF DOMESTIC FLIGHTS
4815. SHRI RAMASHANKAR VIDHARTHI RAJBHAR
Will the Minister of CIVIL AVIATION
be pleased to state:-
(a) whether the airfares of domestic flights have increased significantly in recent times and if
so, the details thereof along with the steps taken by the Government to regulate the same;
(b) the changes in the operational status of Air India post-privatisation and the current status
of its employees;
(c) whether the Government is planning to construct any new international or domestic
airports in the country, particularly in Uttar Pradesh, Bihar and Jharkhand and if so, the
details thereof; and
(d) the time by which Kushinagar Airport in Uttar Pradesh is expected to become fully
operational?
ANSWER
Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar
Mohol)
(a): 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.
;
(b): Post - privatisation, Air India has informed that the airline has taken various steps for
enhancing operational effeciency such as fleet upgrades, mergers, addition of new routes,
Information Technology (IT) overhauls. It has modernized its workforce through hiring,
reshaping contracts, and offering exit options for untenured staff. The employee base is
younger, skilled, and better aligned with private-sector performance metrics. Recent policy
changes boost retention (e.g., raised retirement ages), while operational disciplines (like
restricting business-class travel) reflect a customer-centric shift.
;
(c): Government of India (GoI) has formulated a Greenfield Airports (GFA) Policy, 2008
for development of new Greenfield airports in the country. As per policy, GoI has accorded,
in-principle approval for construction of 24 new Greenfield airports across the country. Out
of these 24 airports, Noida International Airport in Uttar Pradesh is presently under
development.(d): Kushinagar Airport in Uttar Pradesh, owned by the Airports Authority of India (AAI),
has already been operationalized. However, at present there are no schedule operations at
Kushinagar.;
With the repeal of Air Corporation Act in March 1994, the Indian domestic aviation was
deregulated.
It is upto the airline operators to introduce air services to / from any airport in the country
depending on their operational & commercial viability.
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