Indian Airlines Reduced Airfares By 61 Percent After Govt Intervention: Aviation Minister Scindia

Aviation Minister Jyotiraditya Scindia explained that airlines have the authority to determine airfares and various factors are taken into account including market dynamics and season.

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Civil Aviation Minister Jyotiraditya Scindia on Wednesday said that airfares on certain routes from Delhi have been considerably reduced by 14 to 61 per cent following the airlines' advisory group meeting held on June 6. Emphasizing the monitoring efforts of the Directorate General of Civil Aviation (DGCA) and the Ministry, Scindia expressed satisfaction with the reduction in maximum fares for flights connecting Delhi to destinations such as Srinagar, Leh, Pune, and Mumbai. "I am happy to say that the maximum fares on flights connecting Delhi to Srinagar, Leh, Pune and Mumbai were reduced by 14-61 per cent on June 6.

The Directorate General of Civil Aviation (DGCA) and the Ministry are monitoring the daily fares," Scindia said while addressing the press conference. The union minister was addressing media persons in the national capital while highlighting the work done by the aviation sector in the last nine years under Prime Minister Narendra Modi-led Bharatiya Janata Party (BJP) government.

The Aviation Minister further said that for the rates, the sector follows an algorithm. Scindia explained that airlines have the authority to determine airfares and various factors are taken into account including market dynamics and season. The aviation industry employs an algorithm for pricing decisions.

"The airlines have been given rights to fix airfares which are market controlled. The aviation market in the country is season based. The rates are also fixed accordingly. If capacity is low and demand is high and input costs are not reduced, then rates will be high. There is an algorithm to decide the fare," he said.

He further said that private airline companies also have their own social responsibility and there should be a limit to increasing fares across sectors. Further, clarifying and explaining the role of the aviation Ministry, he said, "The role of the ministry is that of a facilitator and not a regulator."

Scindia chaired the high-level meeting which was called on Monday by the airlines advisory group where he urged airlines to self-regulate airfares and maintain reasonable price levels.

"There have been some unforeseen incidents in Manipur and now in Odisha, fare rates should be taken care of. Apart from these, the fare rate remains maximum from Delhi to cities like Srinagar, Leh, Mumbai, Pune, Ahmedabad, and Bengaluru," the minister had said in the meeting.

The skyrocketing prices of domestic air tickets are only adding to the woes of the passengers.