The Government of India urged airlines to devise a mechanism to ensure reasonable airfares amidst a surge in ticket prices. During an hour-long meeting of the airlines advisory group, Civil Aviation Minister Jyotiraditya Scindia on June 5 expressed concerns about the sharp rise in airfares on specific routes.
The Civil Aviation Ministry said a mechanism should be devised by airlines to ensure reasonable pricing within the high RBDs (Reservation Booking Designator) to be monitored by the Directorate General of Civil Aviation.
The Union Ministry also stressed that airlines need to keep a close check on airfare pricing in view of the humanitarian situation and monitor and control any surge in ticket prices to/from that region during calamities. For example, during the Odisha train tragedy, the ministry advised airlines to provide free carriage services to the families of the deceased.
Airfares are neither established nor regulated by the government. The airline pricing system runs in multiple levels (buckets), which are in line with practices being followed globally. The prices are set by airlines based on market conditions, demand, seasonality, and other market forces. The fare increases as demand for seats rises and lower fare buckets get filled quickly.
