New Delhi, Dec 12 (NationPress) The Civil Aviation Minister Ram Mohan Naidu addressed the Lok Sabha on Friday, stating that implementing a cap on airfares year-round is impractical within a deregulated market. This structure has significantly accelerated the growth of India’s aviation industry, ultimately offering advantages to consumers.

In response to a private member's bill advocating for airfare regulations amid the IndiGo crisis, which led to a spike in ticket prices, the minister emphasized that the principle of deregulation must be upheld. He asserted, "To foster growth in the civil aviation sector, it is essential to maintain deregulation to facilitate the entry of more competitors into the market."

Naidu elaborated that airfares typically increase during festive seasons due to heightened demand on specific routes and at particular times. He noted that such fluctuations are seasonal and capping fares for an entire year across any sector is not feasible. According to him, airfares are naturally regulated by market dynamics of demand and supply.

The Aviation Minister remarked that regulating airfares is not a simple solution, as the government must take into account the long-term sustainability of the entire aviation ecosystem, which includes airlines, airports, and their interconnecting operational networks.

He pointed out that countries experiencing rapid growth in their aviation sectors often feature deregulated markets that promote competition and attract more participants.

Naidu added, "Ticket prices are best determined by demand and supply, with consumers ultimately benefitting as competition among airlines drives down fares."

He also provided statistics indicating that when comparing India's airfares with those of other nations, the rate of increase is, in fact, negative.

Moreover, Naidu reaffirmed that the Centre retains authority under the Aircraft Act to impose fare caps in extraordinary circumstances to safeguard passengers.

He cited various instances such as the Covid-19 pandemic, events like Mahakumbh, the Pahalgam–Srinagar situation, and recent disruptions in IndiGo flights when the government intervened to stabilize sudden fare surges.

Additionally, Naidu highlighted the ‘Fare Se Fursat’ initiative, launched in partnership with the Alliance of Airlines, where the government has established fixed fares on 25 routes, including those in the Northeast and Southern India.

He emphasized that increasing capacity is the long-term solution to recurring price spikes, indicating the government’s perspective that fare volatility is influenced by supply constraints, not merely airline pricing.