The government is contemplating the establishment of a dedicated team to monitor sudden spikes in airfares as the festive season nears, according to sources familiar with the discussions. This proposal seeks to address the shortcomings of the current monitoring system, which relies on average fares and often misses abrupt price surges.
Civil Aviation Minister K Ram Mohan Naidu, upon assuming office, acknowledged the considerable fluctuations in airfares since the Covid-19 pandemic. “As a passenger myself, I understand the pain,” Naidu said, vowing to reassess fare mechanisms.
An official involved in the discussions, who requested anonymity, stated, “The minister’s top priority is setting up a dedicated team to track airfares. He believes there should be a mechanism in place to protect consumers from excessively high fares.”
A former official from the Directorate General of Civil Aviation (DGCA) noted that the current fare monitoring is conducted by the Tariff Monitoring Unit (TMU) within the DGCA, which has been ineffective in flagging fare spikes as it averages prices by taking the lowest and highest fares on a route.
“Because fares are averaged, sudden spikes on specific days and routes often go unnoticed,” a senior official said. “The new system, which is currently under discussion and expected to be finalized soon, will specifically identify fare spikes that exceed the normal high fares.”
“The existing fare monitoring system at the DGCA will continue,” the official added.
Amid surging airfares not only during festive seasons but also during natural calamities, the ministry has started monitoring fares more closely and advising airlines to exercise moderation in pricing while considering passenger interests.
Responding to a question in Parliament, former Civil Aviation Minister Jyotiraditya Scindia had noted that the ministry randomly monitors airfares across 60 routes on various days leading up to scheduled flights.
Although airfares have been deregulated since 1994, airlines are encouraged to self-regulate and practice restraint in pricing.
Currently, the TMU under the DGCA oversees fares from 30 days to one day before scheduled flights, requiring airlines to upload fare sheets and report monthly changes.
Ajay Prakash, President of the Travel Agents Federation of India (TAFI), warned, “It remains to be seen if the new team will have the authority to act against airlines charging exorbitant fares. Without enforcement power, creating this dedicated team would be pointless.”
“Civil aviation is a seasonal industry with fares that fluctuate frequently. Establishing dedicated teams may not be effective as long as airfares remain deregulated,” an industry expert commented anonymously.
As the festive season approaches, fares are already rising. Online platforms reported significant fare increases on several routes.
For instance, a non-stop return flight from Bengaluru to Delhi for late October was priced at a minimum of ₹26,000 when checked on Friday.
“For the Diwali period, airfares on the Delhi-Chennai route have surged by 15%, while fares on the Mumbai-Hyderabad route have increased by 21%. Similarly, the Delhi-Goa and Delhi-Ahmedabad routes have seen hikes of 19%. Other routes such as Delhi-Chennai, Mumbai-Bengaluru, and Delhi-Hyderabad are experiencing one-way fare increases of 10-15%. Bookings to destinations like Goa, Kashmir, Himachal Pradesh, and Kerala are leading, alongside metro routes for the festive season,” said Nishant Pitti, CEO and co-founder of EaseMyTrip.
