Airlines sensitized to exercise moderation in pricing, to keep passenger interest in mind: Jyotiraditya Scindia in Lok Sabha

Civil Aviation Minister Jyotiraditya Scindia on Thursday said that airlines have been sensitized to exercise moderation in pricing, and to keep passenger interest in mind. While answering a question regarding rising airfares during the Question Hour in the Lok Sabha, the minister said that the airlines have committed to ensure that airfares do not surge during events such as natural disasters, calamities, etc. 

In order to improve the availability of flights and seats on busy sectors, Scindia said that the government has been encouraging airlines to acquire aircraft including widebody aircraft and operate more flights which shall ease out the demand and supply situation. "As the sector will grow, more and more aircraft will come into the industry which will enhance the supply situation leading to positive impact on airfares," he said in his answer in the Lower House of Parliament.

Ministry had consultation with airlines and the representatives were advised to self-regulate and keep passengers interest in mind while fixing the airfares, he added. 

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The civil aviation minister also informed the House that the number of air passengers has gone up from six crore in 2014 to 14.5 crore at present. "There were only six crore travellers in 2014. In the last nine years, this number has gone up to 14.5 crore," Scindia said. 

He informed that airfare today is competitive with the fare of the AC First Class of the Indian Railways. "We estimate, by 2030, there will be 42 crore air passengers and the sector will grow three times," he avered.

Scindia said that the civil aviation sector is a deregulated sector and despite the impact of the COVID-19 pandemic and rising jet fuel cost, airfares have not increased in the same proportion.

Responding to an MP's question regarding rise in fares during holiday and festival seasons and in case of natural calamities, Scindia said, "We must understand the situation in civil aviation space. Civil aviation is a seasonal sector. We have a tariff monitoring unit that looks at 60 routes randomly.... If you do the booking in advance, the fare will not be high," he said.

"In the last three years, airlines have made losses (ranging) from Rs 55,000 crore to Rs 1,30,000 crore. Covid has destroyed the financial viability of airlines," he said.

"Air turbine fuel is close to 40 per cent of operating cost of airlines. ATF prices have gone up three times, airfares have gone up nowhere in rationale," he said.

(With Agency Inputs)