The government will not impose a cap on airfares during the upcoming festive season but will ask airlines to keep ticket prices at reasonable levels, Civil Aviation Minister K Rammohan Naidu said on Tuesday.
Naidu said airlines are facing higher operating costs due to rising fuel prices, with the ongoing West Asia crisis pushing up aviation turbine fuel (ATF) costs.
Speaking to reporters on the sidelines of the signing of agreements for the next phase of the Udaan scheme, the minister said the government regularly engages with airlines on airfare issues during festivals and major events.
He said airlines have been advised to ensure that fares remain reasonable during the festive period so that passengers travelling during important occasions are not burdened by high ticket prices.
Responding to a question on whether the government would introduce an airfare cap, Naidu said there was no such plan.
He added that the current situation was not related only to the festive season, but also to the ongoing international crisis and its impact on operating costs.
According to Naidu, ATF accounts for around 40-43% of airfares. Therefore, even a small increase in fuel prices can have a direct impact on air ticket prices, as fuel forms a major part of an airline’s operating expenses.