"Airfares Are Market Driven": Government On Flight Charges

Central government said today that airfares are market driven and as per rules, airlines are free to fix tariffs, having regard to all relevant factors. Minister of State for Civil Aviation Murlidhar Mohol was responding to a question asked by Congress MP Kodikunnil Suresh in the Parliament.

“Airfares are market driven and under the provisions of Rule 135(1) of the Aircraft Rules, 1937, airlines are free to fix tariffs, having regard to all relevant factors, including cost of operation, characteristics of services, generally prevailing tariff etc,” the minister said.

Mohol also informed the Lok Sabha that the airline fare system runs in multiple levels (buckets or Reservation Booking Designators) which are in line with practice being followed globally.

“The fares are fixed by airlines keeping in mind the market, demand, seasonality, prevailing international scenarios and other market forces. The airfare increases with increase in demand of seats as the lower fare buckets get sold out faster and move to higher fare buckets. DGCA’s Tariff Monitoring Unit (TMU) ensures that the fares being charged by the airlines are as per the tariff established by the airlines,” he added.