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Rising airfares in India raise concerns for aviation industry

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Shillong, July 9:  The Indian aviation industry has witnessed significant growth in recent years, becoming an essential part of people’s lives for long-distance travel due to its convenience and speed.

However, this growth has come with its challenges, one of them being the frequent fare hikes imposed by airlines.

According to the Airports Council International (ACI) Asia-Pacific, India has seen the highest surge in airfares compared to other countries in the region.

According to IANS, India’s airfares have risen by 41 percent, raising concerns about the long-term recovery of the civil aviation industry.

Other countries, such as the United Arab Emirates (34 percent), Singapore (30 percent), and Australia (23 percent), have also experienced significant fare hikes.

The Central government claims that the rise in airfares is limited to specific routes.

In a recent meeting, Union Civil Aviation Minister Jyotiraditya M. Scindia emphasized the importance of maintaining reasonable airline ticket prices, particularly after the resumption of domestic air travel following Covid-19 lockdowns.

Scindia stressed the need to keep prices within an acceptable range and conveyed this message clearly to the airlines.

He highlighted the importance of avoiding exorbitant prices, especially in light of recent incidents and unforeseen events or emergencies.

The government is closely monitoring fares on a daily basis and cannot permit prices to escalate beyond what is justifiable.

To regulate fares, airlines have been urged to self-monitor prices, especially on routes previously served by the grounded airline, Go First.

The objective is to ensure that air travel remains affordable and accessible to passengers while considering the challenges faced by the aviation industry, said Scindia in a press conference.

Since the repeal of the Air Corporations Act in 1994, airfares in India have not been regulated by the government. Airlines have the freedom to charge reasonable fares based on their operational viability, subject to compliance with the Aircraft Rules.

The recent surge in airfares can be attributed to the increase in aviation turbine fuel (ATF) prices and supply chain disruptions caused by the Ukraine-Russia war, as stated by the ministry.

Finding a balance between affordability and operational viability is crucial for the Indian aviation industry. Ongoing discussions and collaboration between the government, airlines, and industry stakeholders are necessary to address traveler concerns and ensure the sustainable growth of the civil aviation sector, according to an expert.

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