Airfares During Festive Season: Goverment rules out airfare cap during festive season, urges airlines to keep prices reasonable
The government will not impose a cap on airfares during the upcoming festive season but will advise airlines to keep ticket prices at reasonable levels, civil aviation minister K Rammohan Naidu said on Tuesday.Speaking to reporters on the sidelines of the signing of pacts for the next phase of the regional connectivity scheme Udaan, Naidu said the government has handled airfares during festivals and important events in the past by engaging with airlines.
Government to engage with airlines on fares
“We engage with the airlines continuously; we also have regular meetings with them. And we definitely point it to them that during this festive season, you have to ensure that the fair prices are kept at a reasonable level so that the people who want to travel, especially in these important times, get to see the benefit,” Naidu said.He was responding to a question on whether the government would impose a cap on airfares during the forthcoming festive season.
West Asia crisis pushes up aviation fuel costs
Naidu said the ongoing West Asia crisis has pushed up the price of aviation turbine fuel (ATF), adding to the operating costs of airlines.“This is not necessarily because of the festive season or anything, but there is an ongoing crisis situation,” he said.The minister said fuel accounts for a significant share of an airline’s operating expenses. ATF makes up around 40-43 per cent of airfares, he said, meaning even a small increase in fuel costs directly pushes up ticket prices.
