Higher airfares on the cards?

Last December, the unexpected crisis in IndiGo flight services led to a huge increase in domestic flight fares. Ticket prices increased by two to three times the normal price. Following this, the Center imposed a limit on the maximum amount by which domestic flight ticket prices could be increased. This restriction has now been withdrawn. Airlines should not take this as an opportunity to increase flight rates at a whim. With the removal of restrictions, ticket prices can be set according to the increase in passenger traffic. Airlines tend to increase ticket prices during every holiday season, even at times when the fuel prices remain unchanged.

The decline in airline revenues following the Middle East conflict has taken a toll on airline companies. Air travellers are eagerly waiting to see if this will be reflected in the new ticket prices. If airfares are increased uncontrollably, the tourism sector will take a hit. The holidays normally witness hundreds of domestic tourists travelling from North India to South India and back. If ticket prices are increased, many middle-class families will cut short their trip to nearby locations. The saving grace is that the central government has warned that it will impose restrictions if companies increase the airfares uncontrollably. Therefore, it is wise not to increase the rates beyond a limit to avoid another crisis akin to IndiGo. At that time, the government had introduced a maximum limit of 18,000 for domestic services.

The current situation is not the same as last December. There is a possibility of a huge increase in fuel prices from next month. The rates are fixed on the first day of every month. It can be assumed that domestic air fares may increase from the statement made by Union Civil Aviation Minister K. Ram Mohan Naidu that fuel prices may change in the wake of the West Asian conflict. Meanwhile, the Union Civil Aviation Ministry warned that strict action will be taken if there is a price increase in a way that exploits passengers. It has also been clarified that the situation will be monitored in real time.

The restriction was lifted after the Federation of Indian Airlines wrote to the central government to remove the restrictions imposed on ticket prices in the wake of the increase in aviation fuel prices. Air ticket prices from India to various countries have also increased significantly due to the conflict in the Gulf. Many airlines are now charging more than double. Ticket prices have increased significantly for services centred on countries like Kuwait, Qatar, and Bahrain. Tickets that were previously priced between Rs 10,000 and 15,000 now cost between Rs 25,000 and 30,000. Return ticket prices from the Gulf to India have also been increased by the same amount.