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  • Seasonality and rising fuel prices are to blame for the rise in airfare, Scindia informs Parliament.

Jyotiraditya Scindia, the union minister of civil aviation, said parliament on Thursday that seasonality, supply-demand restrictions, as well as the hike in fuel prices, were the main causes of the recent spike in airfare experienced in India.

A member questioned him about if the administration was aware of the increase in both domestic and international airfares.
Few industries have noticed the recent rise in airfare, which is mostly caused by seasonality and supply-demand imbalances. Furthermore, the rise in fuel prices is also responsible for the increase in airfare, Scindia said in a written reply to a question in the Lok Sabha, adding that the government had taken action to educate the airlines.

The regular monitoring of the airfares in these specific areas (where there was an upswing) is the reason they have demonstrated a downward tendency.

The Tariff Monitoring Unit, which the Directorate General of Civil Aviation (DGCA) established, keeps track of prices on a selection of sectors on a sporadic basis. This guarantees that the airline’s set price, which is visible on their website, is adhered to by the airfares that are charged, “he noted.

Notably, there are no government regulations or price controls on airfares in India; instead, they are determined by the market. Airlines are permitted to set acceptable fees taking into account all pertinent elements, such as operating costs, service characteristics, and a reasonable profit.

As long as the fare charged by airlines does not exceed the fare set and advertised on their website, airlines must comply with the regulatory obligations under the 1937 Aircraft Rules.

Further, asked what steps government has to bring legislation for uniform fares for air travel, Scindia responded saying there is no proposal at present to interfere with the existing regulatory framework on airfare.

In a meeting with the Airlines Consultative Group on June 5 to discuss fares, Minister Scindia asked the airlines to “self-regulate” fares and uphold a fair price point.

Go First, an Indian low-cost airline that filed for voluntary insolvency in early May, suspended all of its flight operations in early June, citing operational reasons, which is likely to have increased the pressure on airfares.
Source- The print
Link- https://theprint.in/economy/rise-in-airfare-driven-by-seasonality-fuel-price-hike-scindia-informs-parliament/1678273/


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