Airfares on certain routes from Delhi have been considerably reduced by 14% to 61% following the airlines’ advisory group meeting held on June 6, said Union Civil Aviation Minister Jyotiraditya Scindia.
He expressed satisfaction with the airfares reduction for flights connecting Delhi to other destinations such as Srinagar, Leh, Pune, and Mumbai.
Addressing a press conference, Scindia said, “I am happy to say that the maximum fares on flights connecting Delhi to Srinagar, Leh, Pune and Mumbai were reduced by 14-61 percent on June 6. The Directorate General of Civil Aviation (DGCA) and the ministry are monitoring the daily fares.”
The minister also highlighted the work done by the aviation sector in the last nine years under Prime Minister Narendra Modi-led Bjp government.
Scindia explained that airlines have the authority to determine airfares and various factors which are taken into account including market dynamics and season. The aviation industry employs an algorithm for pricing decisions.
“The airlines have been given rights to fix airfares which are market controlled. The aviation market in the country is season based. The rates are also fixed accordingly. If capacity is low and demand is high and input costs are not reduced, then rates will be high. There is an algorithm to decide the fare,” he said.
He informed that private airline companies also have their own social responsibility and there should be a limit to increasing fares across sectors.
According to Jyotiraditya Scindia, the role of the aviation ministry is that of a facilitator, not a regulator. He chaired the high-level meeting which was called on Monday by the airline’s advisory group where he urged airlines to self-regulate airfares and maintain reasonable price levels.
“There have been some unforeseen incidents in Manipur and now in Odisha, fare rates should be taken care of. Apart from these, the fare rate remains maximum from Delhi to cities like Srinagar, Leh, Mumbai, Pune, Ahmedabad, and Bengaluru,” the minister said.