New Delhi: Civil Aviation Minister K Rammohan Naidu told the Lok Sabha on Friday that although the government holds exclusive authority to impose caps on airfares during extraordinary situations, such intervention cannot by itself resolve concerns over rising ticket prices. His remarks came during a debate on a private member’s resolution titled “Appropriate Measures to Regulate Airfare in the Country”, moved by Congress MP Shafi Parambil, who later withdrew the proposal.
Naidu said the aviation ecosystem operates at several levels and that issues related to airline viability must be viewed in that context. He cited the recent distance-based cap imposed on domestic fares earlier this month following widespread IndiGo flight disruptions. According to him, domestic ticket pricing remains “on par with other nations” and imposing a nationwide cap would not be feasible.
The minister argued that a deregulated environment ultimately supports consumer interests and industry expansion. “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,” he said. He added that deregulation does not give airlines unrestricted freedom since the government retains the power to intervene when fares rise abnormally. “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,” he said.
Naidu noted that airfare fluctuations during festive seasons are typical and added that long-term trends show a decline in real terms. “There has been a 43 per cent decrease in airfares when you consider the Consumer Price Index, inflation,” he said, though he did not specify the time frame for this comparison. He maintained that capping fares is not a “single-way solution” and reiterated that deregulation continues to be central to the sector’s progress.
Responding to concerns raised during the debate, Naidu pointed to limited aircraft availability as a key bottleneck. Indian carriers have placed orders for more than 1,700 aircraft, but global supply chain issues have slowed deliveries. To reduce dependence on external suppliers, the minister highlighted ongoing discussions aimed at manufacturing aircraft 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,” he said.
He referenced the Russian Sukhoi SJ 100 regional aircraft, noting that Hindustan Aeronautics Ltd (HAL) is engaging with the manufacturer and that an MoU has been signed to bring technology to India for domestic production. Naidu also said talks were underway with Brazilian aircraft maker Embraer. “We are telling them to come to India and manufacture here,” he said.
As part of efforts to explore consumer-friendly fare models, state-owned Alliance Air has launched a three-month pilot programme offering fixed ticket prices. Naidu said the ministry will review the impact on passengers and may consider similar arrangements for private airlines depending on the feedback received.
Opposition members used the debate to voice frustration over rising airfares. Congress MP Varsha Gaikwad alleged that air travel had become unaffordable for ordinary citizens. “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,” she said. She added that the closure or merger of multiple airlines had created conditions resembling monopoly, with consequences that were evident in recent disruptions.
Samajwadi Party MP Ramashankar Rajbhar said that when a few companies dominate operations, fares tend to be set according to their own interests, creating conditions that foster not only competition but a fear of overpricing among passengers.