‘Year-Round Airfare Cap Not Possible’: Civil Aviation Minister Tells Lok Sabha Amid IndiGo Crisis
While a Tariff Monitoring Unit ensures fare transparency, the government prefers increasing capacity during high demand, like during the Kumbh Mela, over fixed fares.
Civil Aviation Minister Ram Mohan Naidu told the Lok Sabha on Friday (December 12, 2025) that it is not possible to impose a year-round cap on airfares. He said a dedicated Tariff Monitoring Unit has been set up within the DGCA to ensure airlines follow the approved tariff sheets when deciding ticket prices. According to him, the mechanism improves transparency and enables swift action on complaints about excessive fares.
The minister reiterated that setting a fixed fare for an entire year is impractical. “A year-long cap on any specific route is not feasible because market demand and supply ultimately determine the final price. The government intervenes when necessary, but keeping fares fixed all year is not practical,” he said.
Deregulation Helped Boost Competition: Naidu
Naidu said two factors must move in tandem when regulating airfares, passenger safety and market growth. He noted that after deregulation in 1994, the number of airlines increased, bringing more competition and direct benefits for travellers. The government still has the power to cap fares under special circumstances, he added, “but that is not a long-term solution.”
The aviation minister emphasised that the real solution lies in increasing capacity when demand goes up. Citing the Kumbh Mela, he explained that when passenger demand for Prayagraj surged, the government increased flights to the city. This approach, he said, provides relief for travellers while keeping the market balanced.
His remarks come at a time when airfares had recently spiked due to mass flight cancellations by IndiGo. The government had to intervene and impose a temporary fare cap to prevent airlines from overcharging passengers.
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