Government will not directly regulate airline fares:Can set prices during emergencies; had earlier promised new rules to curb arbitrary fare hikes

The central government has clarified that airline fares will not be directly controlled under the new rules. According to sources, airlines will be able to set fares based on demand and seat availability. However, in situations such as natural disasters or emergencies, the government will have the power to fix fares so that passengers do not have to pay more. Under the new rules, airlines will have to submit information on flight fares to the Directorate General of Civil Aviation (DGCA) one month in advance. They will also have to display this information on their websites. The DGCA will monitor whether any airline charges fares above the prescribed limit. The central government had earlier told the Supreme Court on Friday that new rules would be implemented within two weeks to prevent airlines from charging arbitrary fares. The court was hearing a petition filed by social activist S. Lakshminarayan. The petition seeks a ban on expensive tickets and hidden charges during festivals and holidays. Flight tickets become more expensive during festivals Airline fares have risen significantly compared with last year during this festive season because of rising aviation fuel prices and fewer flights. Aviation Minister Ram Mohan Naidu said that keeping fares under control had become a challenge due to the increase in ATF prices. The government is holding discussions with airlines and oil companies on the matter. A few days ago, Air India and IndiGo had raised fares A few days earlier, Air India and IndiGo had raised fares because aviation turbine fuel (ATF), or jet fuel, had become more expensive. Air India had announced an extra fuel charge of up to ₹1,200 on domestic flights and up to ₹17,800 on international flights from 9 October. The new fuel charges also apply to Air India Express, as both are Tata Group airlines. Meanwhile, the country’s largest airline, IndiGo, had also raised fares from 6 October. Jet fuel is the largest expense for airlines, accounting for 30% to 40% of their total operating costs.