Airfares Cannot Be Capped for an Entire Year: Union Civil Aviation Minister
Samajwadi Party MP Ramashankar Rajbhar said when some companies have control of operations, they decide the fares as per their own will which leads not just to competition but fear of overpricing.
New Delhi:The Union Civil Aviation Minister K. Ram Mohan Naidu on Friday said airfares cannot be capped for the entire year as ticket prices typically rise during the festive season. He added that the government has the power to impose the cap in extraordinary situations only.
Replying to a debate on a private member's resolution on 'Resolutions: Appropriate Measures to Regulate Airfare in the Country' in the Lok Sabha, the minister said domestic air ticket pricing remains "on par with other nations" and it would not be feasible for the government to cap airfares across the nation.
The resolution, which was later withdrawn, was moved by Congress member Shafi Parambil.
According to the minister, a deregulated market ultimately benefits consumers and that ticket prices typically rise during festive seasons. Earlier this month, the civil aviation ministry imposed a distance-based cap on domestic airfares in the wake of the IndiGo flight disruptions.
"If we want the civil aviation sector to grow, the first and foremost requirement is to keep it deregulated so that more players can enter the market." However, the minister also said that deregulation does not give the airlines a free hand and the government retains powers to intervene when needed.
Stressing that capping airfares is not a "single-way solution", the minister said that in comparison internationally, the rate of growth in airfares in India has been negative, in relative and real terms.
Participating in the debate, Congress member Varsha Gaikwad claimed air travel is not for comfort of common man today but a way to harass and loot them. "There is loot in airfares... A ticket that earlier used to cost around Rs 5,000 to Rs 6,000 now costs Rs 25,000 to Rs 30,000. There are several hidden charges which are imposed on air tickets booking. Several airlines have closed down or merged, which have led to a monopoly of airlines and the repercussions of which are faced by the public, an example of which we all saw last week," she said.
Samajwadi Party MP Ramashankar Rajbhar said when some companies have control of operations, they decide the fares as per their own will which leads not just to competition but fear of overpricing.