Airfare Reforms in India: No More 24-Hour Price Changes!

In a bid to address fluctuating airfares and enhance affordability for passengers, Civil Aviation Minister K. Rammohan Naidu announced significant changes to the regulation of airline ticket pricing.

Speaking in the Rajya Sabha on Thursday, the minister emphasized the government’s commitment to removing the clause that allows airlines to change fares within 24 hours of booking.

Key Changes to Airfare Rules

Minister Naidu highlighted that the removal of the 24-hour fare change clause would help stabilize ticket prices and reduce unexpected airfare hikes. This move is expected to bring transparency and predictability to airfare structures, offering travellers more certainty when booking flights.

“We are committed to bringing in affordability. This mechanism will address irregularities in airfares,” Naidu stated.

Airfares Show Signs of Moderation

Despite ongoing concerns over high airfares, Minister of State for Civil Aviation Murlidhar Mohol noted a decline in ticket prices in 2024, especially during festive seasons. He explained that while airfares are not regulated directly by the government, steps are taken to ensure fair pricing practices.

Mohol added that airlines are allowed flexibility to set fares based on operational needs, maintaining a competitive market. However, the government monitors fare trends and intervenes when necessary to prevent excessive pricing by reallocating capacity across sectors.

Government’s Approach to Regulation

While the government avoids direct regulation of airfares to encourage competition, it remains vigilant. According to Minister Mohol:

“The government generally refrains from regulating airfares but intervenes when needed to ensure passenger welfare and prevent exorbitant pricing.”

New Aviation Bill Passes in Parliament

In a related development, the Bharatiya Vayuyan Vidheyak 2024 was passed in the Rajya Sabha, marking a historic shift in aviation regulation. The bill, which replaces the 90-year-old Aircraft Act of 1934, aims to simplify outdated rules and improve the ease of doing business in the aviation sector.

The bill had earlier been approved by the Lok Sabha on August 9, 2024. Minister Naidu explained that renaming the bill in Hindi reflects India’s cultural heritage.

“It may take time to get used to the Hindi title, but it showcases India’s rich heritage,” Naidu added in response to concerns from MPs.

Government Efforts to Boost Air Travel Accessibility

The government’s Udan scheme continues to improve air travel accessibility, connecting underserved regions and offering affordable options for passengers. Minister Naidu reaffirmed the government’s commitment to expanding affordable air travel across India.

Conclusion

With these new measures, the Indian government aims to balance affordability and competitiveness in the aviation sector. Travelers can look forward to more predictable pricing, while the updated regulatory framework promises a more streamlined experience for industry stakeholders.