Govt not to cap airfares for festive season, says Rammohan Naidu

The government will not cap airfares during the upcoming festive season but will advise airlines to keep fares reasonable, Civil Aviation Minister K Rammohan Naidu said. He said higher ATF prices amid the West Asia crisis were pushing up airline operating costs.

New Delhi: The government will not cap airfares for the upcoming festive season but will advise airlines to keep prices reasonable, Civil Aviation Minister K Rammohan Naidu said on Tuesday, even as he mentioned that operating costs for aviation companies have risen due to higher fuel costs.

Talking to reporters on the sidelines of the signing of pacts for the next phase of Udaan, the minister said that in the past also, the government had handled the price situation during festivals or important events.

---

“We engage with the airlines continuously; we also have regular meetings with them. And we definitely point it out to them that during this festive season, you have to ensure that the fare 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,” the minister said.

He was responding to a question on whether the government would impose a cap on airfares during the forthcoming festive season.

He further said that the ongoing West Asia crisis has driven ATF prices up.

Fuel accounts for a massive portion of an airline’s operating expense structure.

“This is not necessarily because of the festive season or anything, but there is an ongoing crisis situation,” he said.

Naidu said ATF makes up 40 to 43 per cent of airfares and even a small rise in fuel costs directly pushes up ticket prices.