New Delhi: Government has exclusive powers in extraordinary circumstances to cap airfares but it is not a single-way solution, Civil Aviation Minister K Rammohan Naidu said Friday amid rising concerns over high air ticket prices.
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 also mentioned about non-availability of aircraft and that discussions are on to make planes in India.
The resolution, which was later withdrawn, was moved by Congress member Shafi Parambil.
There are multiple levels in the aviation ecosystem and various aspects, including the viability of airlines, he noted.
Earlier this month, the civil aviation ministry imposed a distance-based cap on domestic airfares in the wake of the IndiGo flight disruptions.
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, Naidu said.
According to the minister, a deregulated market ultimately benefits consumers and that ticket prices typically rise during festive seasons.
He also emphasised that deregulation remains central to the growth of civil aviation.
“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.
Naidu said that state-owned Alliance Air has started a three-month pilot scheme of fixed airfares and after looking into how much it has benefited passengers as well as the feedback, the ministry might also consider a similar plan for private airlines.
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.
“There has been a 43 per cent decrease in airfares when you consider the Consumer Price Index (CPI), inflation…,” he said and added that airfares are affordable.
However, Naidu did not mention about the time frame for the comparison.
“The government has exclusive powers in extraordinary circumstances when they feel that when airfares are rising above the normal and becoming abnormal, we are taking it up…,” Naidu said.
Listing out the bottlenecks, the minister said the main issue is about the availability of aircraft.
Indian carriers have more than 1,700 aircraft on order but global supply chain problems have been delaying the deliveries.
In this context, Naidu mentioned about the efforts to make planes in India.
“This government has taken a stance that we are not going to wait for these aircraft to be built… We are going to create a programme where aircraft can be built in the country. We should have a Made in India aircraft.
“There is Russian Sukhoi SJ-100 which is a regional aircraft. We are talking with them. HAL is engaging with them. They have (signed) MoU (memorandum of understanding). They are going to get technology here so that we can build the plane here,” the minister said.
According to Naidu, talks are also happening with Brazilian aircraft maker Embraer.
“We are telling them to come to India and manufacture here,” he said.
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 ticket bookings. 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.
PTI
