Civil Aviation Minister K Rammohan Naidu on Friday clarified that while the government holds exclusive powers to cap airfares during extraordinary circumstances, fare control alone cannot solve the larger challenges facing the aviation industry. His remarks came during a debate in the Lok Sabha on a private member’s resolution seeking appropriate measures to regulate the country’s airfares.
The resolution, moved by Congress MP Shafi Parambil, was later withdrawn after an extended discussion on ticket pricing, airline viability, and the overall health of the aviation ecosystem.
Airfare Caps Used Only When Absolutely Necessary
Speaking in the House, Naidu highlighted the ministry’s recent decision to impose a distance-based cap on domestic airfares following widespread IndiGo flight disruptions earlier this month. He noted that such interventions are reserved for situations where fares rise “abnormally” and surpass reasonable levels.
“Capping airfares is not a single-way solution,” the minister said, stressing that the government does intervene, but only to restore fairness during extraordinary circumstances.
Naidu added that India’s airfare growth rate remains negative in real terms, stating there has been a 43% decrease in airfares when adjusted against the Consumer Price Index, though he did not specify the timeframe of this comparison.
India’s Deregulated Aviation Market Benefits Consumers
Defending the country’s deregulated airfare policy, Naidu said that allowing airlines to operate freely encourages competition, which ultimately benefits passengers. According to him, aviation sectors worldwide experience similar seasonal price fluctuations, including fare hikes during festive periods or high-demand seasons.
“If we want the civil aviation sector to grow, the first requirement is to keep it deregulated so more players can enter the market,” Naidu said.
However, he clarified that deregulation does not give airlines a free hand, and the government retains sufficient authority to protect consumer interests.
Alliance Air Tests Fixed-Fare Model
In a significant development, state-owned Alliance Air has rolled out a three-month pilot project featuring fixed airfares. The ministry will evaluate its impact on passengers as well as airline viability.
If the model is found feasible, Naidu said a similar framework may be discussed with private airlines.
Aircraft Shortage a Key Reason Behind Rising Fares
Naidu pointed to a much deeper issue—non-availability of aircraft. With Indian airlines collectively placing orders for over 1,700 aircraft, global supply chain disruptions have slowed deliveries, putting pressure on domestic capacity and, in turn, ticket prices.
India Aims to Build Its Own Aircraft
In a major push for self-reliance, Naidu announced that India is working toward manufacturing commercial aircraft domestically. Discussions are underway with Russia for the Sukhoi SJ-100 regional aircraft, with HAL signing an MoU to bring technology to India.
Talks with Brazilian aircraft manufacturer Embraer are also progressing, with the government encouraging them to set up production lines in India.
“We should have a Made-in-India aircraft,” Naidu asserted while outlining the vision for domestic aircraft manufacturing.
Opposition Raises Concerns Over ‘Loot’ in Airfares
Participating in the debate, Congress MP Varsha Gaikwad accused airlines of exploiting passengers, alleging airfares that once cost ₹5,000–₹6,000 have surged to ₹25,000–₹30,000, along with added hidden charges.
Samajwadi Party MP Ramashankar Rajbhar claimed that reduced competition and consolidation in the aviation industry have created situations where a few companies control fares.
Minister Naidu’s remarks underline a clear stance: while the government is willing to intervene when necessary, India’s aviation sector must remain largely deregulated to sustain growth, competitiveness, and long-term affordability. With aircraft shortages, supply chain delays, and rising demand, the roadmap ahead includes both regulatory vigilance and technological self-reliance to ensure a more stable future for Indian air travel.