Airlines asked to create mechanism to ensure fair ticket pricing

New Delhi: In response to a rise in the cost of plane tickets, especially on some routes that Go First previously served, the government on Monday requested that airlines develop a plan to guarantee fair costs.

Jyotiraditya Scindia, the minister of civil aviation, voiced his worries about the sharp increase in airfare on some routes during an hour-long meeting of the airline advisory committee.

Airlines have been asked to self-monitor airfares on routes that have seen a considerable rise in ticket prices, particularly those that were served by Go First earlier.

Go First stopped flying from May 3 and the reduction of capacity due to the crisis at the budget airline has come at a time when the peak domestic air travel period is around the corner.

A mechanism should be devised by airlines to ensure reasonable pricing within the high RBDs (Reservation Booking Designator) and the same would be monitored by the Directorate General of Civil Aviation (DGCA), the ministry said in a statement.

Airfares are deregulated under the current regulatory regime.

Besides, the ministry has said that during any calamity, airlines need to keep a tight check on the pricing of air tickets “in view of the humanitarian situation and monitor and control any surge in ticket prices to/ from that region”.

In the case of the unfortunate Odisha tragedy, airlines have been advised to provide free carriage (cargo) services to the families of the deceased, the ministry said.

After the deregulation of the country’s airline sector, airfares are market-driven and are neither established nor regulated by the government. Airline pricing runs in multiple levels (buckets or Reservation Booking Designators).

Civil aviation minister Jyotiraditya Scindia, on March 16, informed the Lok Sabha that “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 fixed by airlines keeping in mind the market, demand, seasonality and other market forces. The airfare increases with an increase in demand for seats as the lower fare buckets get sold out fast when bookings are offered by airlines,” he had said in a written reply.

India is one of the fastest-growing civil aviation markets in the world and domestic passenger traffic has been rising after being significantly impacted by the coronavirus pandemic.

In April, domestic airlines flew 128.88 lakh passengers, as per the latest official data.

Crisis-hit Go First is undergoing a voluntary insolvency resolution process.

With PTI inputs