Civil Aviation Minister: Year-Round Airfare Cap Not Feasible, Market-Driven Pricing Essential

Civil Aviation Minister Ram Mohan Naidu says year-round airfare caps are impractical; DGCA monitors airline fares for transparency, while increasing capacity during high-demand periods is the real solution, ensuring passenger relief and balanced market growth.

Post Published By: Karan Sharma
Updated : 12 December 2025, 6:23 PM IST

New Delhi: Civil Aviation Minister Ram Mohan Naidu clarified in the Lok Sabha on December 12, 2025, that it is not feasible to cap airfares for the entire year. He stated that the Directorate General of Civil Aviation (DGCA) has established a Tariff Monitoring Unit to monitor the fares set by airlines. This measure increases transparency in pricing and facilitates prompt action on complaints of exorbitant fares.

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Capping Fares for the Entire Year is Not Practical

The Minister stated that capping fares on a particular route for the entire year is not practical. He explained that the final price of airfares is determined by market demand and supply. The government can intervene when necessary, but maintaining a fixed fare throughout the year is not possible.

Ram Mohan Naidu emphasized that airfare regulation must balance two aspects:

  • Ensuring passenger safety.
  • Promoting the growth of the airline market.

He cited the example of airline deregulation in 1994, which led to an increase in the number of airlines, fostered competition, and directly benefited passengers.

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Increasing Capacity is the Solution

The Aviation Minister stated that the real solution lies in increasing capacity when demand rises. For example, during the Kumbh Mela, when the number of passengers traveling to Prayagraj increased, the government addressed the problem by operating additional flights.

He explained that this approach provides relief to passengers and also maintains market balance.

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Indigo's Recent Flight Cancellations and Government Intervention

Ram Mohan Naidu's statement comes at a time when several Indigo flights were recently canceled, leading to a significant increase in airfares. The government intervened and prevented airlines from charging exorbitant fares.

Instructions for Safe and Timely Operations

Ram Mohan Naidu stressed the importance of maintaining clear and effective communication to keep passengers informed in a timely manner. He emphasized that all stakeholders must ensure that passengers have a safe, uninterrupted, and well-organized flight experience.

He stated, "Every passenger is important, and clear accountability will be established in case of any inconvenience." The Minister directed all airlines and relevant authorities to maintain coordination at every step, based on forecasts and real-time conditions.

Location : 
  • New Delhi

Published : 
  • 12 December 2025, 6:23 PM IST