The government on Monday asked airlines to devise a mechanism to ensure fair airfares amid a hike in air ticket prices, especially on some routes which were earlier served by GoFirst. Civil Aviation Ministry said that in the case of the unfortunate Odisha tragedy, airlines have been advised to provide free carriage (cargo) services to the families of the deceased. During an hour-long meeting of the Airlines Consultative Group, Civil Aviation Minister Jyotiraditya Scindia shared his concerns about the steep hike in airfares on some routes.
Airlines have been asked to self-monitor airfares on routes that have seen a significant increase in ticket prices, especially those previously served by GoFirst. GoFirst had stopped flying since May 3 and the capacity reduction due to the crisis at the budget airline comes at a time when the peak period for domestic air travel is round the corner.
A mechanism should be devised by the airlines to ensure fair pricing within the higher RBD (Reservation Booking Designator) and will be monitored by the Directorate General of Civil Aviation (DGCA), the ministry said in a statement. Air fares are regulated under the current regulatory regime.
Further, the ministry has said that during any disaster, airlines are required to keep a strict vigil on the pricing of air tickets in view of the “humanitarian situation and to monitor and control any increase in ticket prices from that area”. Needed.
Following the deregulation of the country’s airline sector, airfares are market operated and are neither established nor regulated by the government. Airline pricing operates in several tiers (buckets or reservation booking designers). Scindia informed the Lok Sabha on 16 March that “air fares are neither established nor regulated by the government”.
“The airline pricing system operates in a number of tiers (buckets) that are in line with practices followed globally. Prices are decided by airlines taking into account market, demand, season and other market forces. In demand With the increase comes airfare. For seats as the lower fare bucket gets sold out faster when bookings are offered by the airlines,” he had said in a written reply.
India is one of the fastest growing civil aviation markets in the world and domestic passenger traffic is on the rise after being hit hard by the coronavirus pandemic. According to the latest official data, domestic airlines carried 128.88 lakh passengers in April. Crisis-hit GoFirst is undergoing a voluntary insolvency resolution process.