New Delhi: Civil Aviation Minister K. Rammohan Naidu on Friday told the Lok Sabha that the Centre cannot impose fare caps for an entire year, citing seasonal fluctuations in demand and the operational realities of the aviation sector.
"According to the Aircraft Act as it stands, the central government has the power that, in extraordinary circumstances when there is a possibility of misuse of the air tariff deregulation it can intervene to set things right and cap fares, so that passengers do not experience opportunistic pricing at that time," Naidu said.
"The idea behind deregulation when it was introduced was to allow the sector to grow" and "All countries that have seen exceptional growth had deregulated markets. It encourages more players to enter and opens up greater cooperation. You allow market dynamics to function, letting demand and supply play their natural roles. Ultimately, the passenger benefits the most," he added.
He further said, "We cannot cap airfares for the entire year. During the festive season, demand increases and fares go up. We have asked airlines to increase their capacity during these busy periods."
The minister's remarks came amid widespread concern over expensive air tickets during major festivals and as the country's largest airline, IndiGo, faces a mandated reduction in its flight schedule following significant operational disruptions.
