Parliamentary panel calls for 'reasonable' cap on air fares

The civil aviation ministry should introduce "reasonable upper fare caps" for all airlines to ensure accessibility of air transport for the common man, a parliamentary panel recommended in its report tabled in Parliament on Thursday.

The ministry should also devise a mechanism to encourage all airlines to implement the 'price lock' option, wherein customers can reserve their seat with or without paying a nominal fee, the Parliamentary Standing Committee on Transport, Tourism and Culture said in its report. This would help customers make better travel decisions by allowing them to reserve seats without paying the actual price of the ticket upfront.

To promote "accessibility of air transport to the common man", the panel, led by YSRCP MP V Vijaysai Reddy, in its report said, "The Civil Aviation Ministry should introduce reasonable upper fare caps on all airlines, taking into account all relevant factors including the cost of operation, characteristics of service, reasonable profit and the generally prevailing tariff..."


It is essential to maintain a pricing discipline to protect the interests of both airlines and the public, the 31-member committee said.

The committee also said that like Indian Railways, airlines should display seat-wise fares that will provide transparency to customers, making the air fare system more credible and trust-worthy.