Spike in airfare: Civil Aviation Ministry asks aviation companies to self-monitor air ticket prices

The Civil Aviation Ministry in a meeting on Monday, June 5, shared concerns regarding the abnormal surge in pricing on certain air routes. 

According to Zee Business report, the Ministry has asked aviation players to self-monitor the airfare on certain select routes that have seen considerable price hike, particularly those that were earlier being serviced by Go First. The DGCA has also asked airlines players to device a mechanism for ensuring reasonable pricing within the high RBDs (Reservation Booking Designator) which shall be monitored by the DGCA.

There were also discussions about keeping a tight check on the pricing of Air Tickets in view of the humanitarian situation or calamity and monitor and control any surge in ticket prices to/from that region. The DGCA has also advised airlines to provide free carriage (cargo) services to the families of the deceased in case of the unfortunate incident like Odisha tragedy. 

The meeting was held after Zee Business had raised concerns regarding the irrational hike in the price of airfare even after the cut in price of the Aviation Turbine Fuel (ATF) and Value-Added Tax (VAT). 

Airfares have jumped significantly on certain routes, especially in the wake of crisis-hit Go First suspending operations from May 3. 

The official added that airfares are deregulated and the meeting is for monitoring and facilitation purposes amid a rise in airfares on certain routes. The Minister had last week said that the Civil Aviation Ministry was doing an analysis of routes that have been affected by the suspension of flights by Go First — the beleaguered airline that is undergoing an insolvency resolution process.

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