Parliament Question: Increase in Domestic Airfare

GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA UNSTARRED QUESTION NO. : 902 ( TO BE ANSWERED ON THE 23rd July 2026 ) INCREASE IN DOMESTIC AIRFARE 902. SHRI SUKHDEO BHAGAT Will the Minister of CIVIL AVIATION be pleased to state:- (a) whether the Government has conducted any assessment regarding the increase in domestic airfare on major route since 2022 and if so, the details thereof; (b) whether the Government has examined the impact of airline market consolidation following the closure of airlines such as Jet Airways and Go First, on passenger fares and competition and if so, the details thereof; (c) whether the Directorate General of Civil Aviation (DGCA) has received complaints regarding excessive airfares during festive seasons and emergencies and if so, the details thereof; (d) whether the Government proposes to establish a transparent airfare monitoring mechanism for high-demand routes and if so, the details thereof; and (e) the steps taken by the Government to ensure affordable air travel while maintaining fair competition in the aviation sector? ANSWER Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar Mohol) (a) to (e): With the repeal of Air Corporation act in March 1994, the Indian domestic aviation was totally deregulated. Airlines are free to induct capacity with any aircraft type, free to select whatever markets and network they wish to service and operate with the compliance of Route Dispersal Guidelines (RDG) issued by Government, slot allocated by airport operator and further approval from DGCA. Hence, it is up to the airlines operator to consider the introductionof air services to/from any airport in the country depending upon their operational and commercial viabilities. The Government remains committed to promoting a balanced, competitive and resilient civil aviation ecosystem so that national connectivity is not adversely impacted by operational disruptions in any single airline. Competition Commission of India (CCI) is a statutory authority entrusted with the primary goal to eliminate practices having an adverse effect on competition, prevent abuse of dominant position, promote & sustain competition, protect the interests of consumers, and ensure freedom of trade carried on by other players in the market. Airfares are not subject to regulation by the Government and every air transport undertaking shall establish a tariff having regard to all relevant factors, including the cost of operation, characteristics of service, reasonable profit, 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. The Ministry of Civil Aviation (MoCA) has developed a dedicated "Air Fare" grievance module on the AirSewa platform to address concerns related to excessive airfares charged by domestic airlines. 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. ******