Govt mulls formation of dedicated team to monitor surges in airfare

Although airfares have been deregulated since 1994, airlines are advised to self-regulate and exercise moderation in pricing.

The government is considering creating a dedicated team to monitor airfare spikes as the festive season approaches, people aware of discussions have said regarding a proposal that aims to address limitations in the current monitoring system, which averages fares and fails to detect sudden price increases.

Although airfares have been deregulated since 1994, airlines are advised to self-regulate and exercise moderation in pricing. (HT PHOTO)

Civil aviation minister K Ram Mohan Naidu, upon taking office, acknowledged the significant fluctuations in airfares since the Covid-19 pandemic. “I feel the pain of passengers, being one myself,” Naidu said WHEN, pledging to review fare mechanisms.

Although airfares have been deregulated since 1994, airlines are advised to self-regulate and exercise moderation in pricing.

An official close to the discussions, speaking on condition of anonymity, said, “The plan to have a dedicated team tracking fares is the minister’s top priority. He believes there should be a mechanism to protect consumers from high fares.”

Ajay Prakash, president of the Travel Agents Federation of India, cautioned, “It needs to be seen if the team will have authority to act on airlines charging exorbitant fares. Otherwise, setting up this dedicated team will be futile.”

Currently, the Tariff Monitoring Unit under the directorate general of civil aviation (DGCA) oversees fares from 30 days to one day before scheduled flights. Airlines must upload fare sheets and report monthly changes.

As the festive season nears, fares are already climbing. A return non-stop flight from Bengaluru to Delhi for late October showed a minimum fare of ₹26,000 rupees when checked on Friday.

An industry expert, speaking anonymously, argued, “Civil aviation is a seasonal sector with variable fares. There’s no point in building dedicated teams unless airfares are regulated.”

A former official from the Directorate General of Civil Aviation explained that the current system’s averaging method often misses fare spikes on specific days and routes. “The new system will flag fare spikes that are higher than normal high fares,” a senior official said, adding that the existing monitoring will continue alongside any new measures.