SRINAGAR: The Centre on Thursday told the Lok Sabha that domestic airfares in India remain deregulated, with airlines free to determine ticket prices based on commercial and operational considerations, while the government continues to monitor fares on selected routes and intervene only in exceptional circumstances.
In a written reply to Lok Sabha Unstarred Question No. 902 on July 23, Minister of State for Civil Aviation Murlidhar Mohol said the government generally does not regulate airfares in order to preserve competition in the aviation sector. However, it retains an oversight role and has, in extraordinary situations, redistributed airline capacity and imposed temporary fare caps, including during the Covid-19 pandemic, the Maha Kumbh, the Pahalgam incident and disruptions affecting IndiGo flights.
Responding to questions raised by MP Sukhdeo Bhagat on rising domestic airfares, airline market consolidation, complaints over excessive fares and fare-monitoring mechanisms, the minister said India’s domestic aviation sector has remained fully deregulated since the repeal of the Air Corporations Act in March 1994.
He said airlines are free to decide aircraft deployment, routes and network planning, subject to compliance with the Route Dispersal Guidelines, airport slot allocation and approvals from the Directorate General of Civil Aviation (DGCA). Decisions on launching or continuing services depend on the operational and commercial viability assessed by individual airlines.
The minister said the government remains committed to maintaining a balanced, competitive and resilient civil aviation ecosystem so that national connectivity is not adversely affected by disruptions involving any single airline.
On concerns over competition following the closure of carriers such as Jet Airways and Go First, Mohol said the Competition Commission of India (CCI) is the statutory authority responsible for preventing anti-competitive practices, checking abuse of dominant position, protecting consumer interests and ensuring fair competition in the market.
He reiterated that tariffs are governed by Rule 135 of the Aircraft Rules, 1937, under which airlines are required to determine fares after taking into account operational costs, service characteristics and reasonable profit.
To improve transparency and address complaints of excessive ticket prices, the minister said the Ministry of Civil Aviation has introduced a dedicated “Air Fare” grievance module on the AirSewa platform.
He also informed the House that the DGCA has established a Tariff Monitoring Unit (TMU), which monitors fares on 78 selected domestic routes every month by reviewing airline websites to ensure airlines do not charge fares outside the price bands declared by them.
