Intense competition rules out the need for airfare capping, says aviation minister

Civil Aviation Minister Ashok Gajapathi Raju has said that capping of airfares in the backdrop of passenger complaints doesn’t need to be done, as the intense competition among the airlines will not let the problem reach alarming levels.

Raju said that restricting the airfares is against the better judgement as per business sense, and it could also discourage airlines from flying on non-profitable routes, thereby complicating the government's plan for pan India connectivity, a part of which includes 32 airports built by Airport Authority of India at a cost of Rs 3,000 crore, which were lying "unconnected".

He, however, added that one could soon expect some of passenger-centric measures like "time-bound" grievance redressal mechanism.

One could also expect rationalisation of ticket-cancellation charges, which would most likely be capped around the base fare, as against current exorbitant fees.

He said that while capping the airfares is out of question, his Ministry won’t let the airlines do whatever they wish, as it keeps a "continuous tab" on price movements.

He also went on to say that air ticket prices have come down significantly over the past few years.
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