Government's Airfare Intervention: Balancing Act or Overreach?

The government, under Civil Aviation Minister K Rammohan Naidu, has powers to regulate airfares in exceptional circumstances amid high ticket prices. Naidu emphasizes deregulation for aviation sector growth while maintaining oversight. Efforts are being made for local aircraft production to tackle supply chain delays.

Civil Aviation Minister K Rammohan Naidu stated on Friday that while the government retains exclusive powers to cap airfares in extraordinary circumstances, a one-size-fits-all solution isn't feasible. The statement comes amid growing concerns over the steep rise in air ticket prices globally.

The debate, which took place in the Lok Sabha, revolved around a private member's resolution moved by Congress member Shafi Parambil. Although the resolution was later withdrawn, Naidu addressed multiple issues within the aviation sector, including aircraft availability and potential manufacturing in India, as global supply chain problems delay deliveries.

Naidu reassured that the domestic aviation market remains competitive, with fares on par with global standards and acknowledged deregulation's role in fostering sector growth. Nonetheless, he indicated that the government would not hesitate to intervene if necessary, signaling efforts to evaluate fixed-fare models initiated by state-owned airlines.

(With inputs from agencies.)