On Thursday, Union Civil Aviation Minister Ram Mohan Naidu Kinjarapu pledged to investigate claims of sudden fare increases on Air Vistara, following complaints from several Members of Parliament (MPs) and a prompt from Lok Sabha Speaker Om Birla.
During the Question Hour in the Lok Sabha, DMK MP Dayanidhi Maran raised concerns about Air Vistara’s ticket pricing for the Chennai-Delhi route. Maran claimed that while booking a ticket, the fare initially appeared to be around Rs 25,000. However, he alleged that by the time the booking process was completed, the price had surged to two or three times higher.
Maran also speculated whether the technology used by TCS, a Tata Group company like Air Vistara, might be contributing to the fare hike. He suggested that this technology could be manipulating ticket prices.
Lok Sabha Speaker Om Birla, who had received similar complaints from other MPs, emphasized the need for a thorough investigation. Birla pointed out that the money spent on these tickets comes from parliamentary funds and therefore, the issue needed proper scrutiny.
In response, Minister Naidu assured that an inquiry would be conducted into the allegations. He emphasized that the ministry is committed to making air travel more affordable for the general public.
Naidu explained that airline fares are determined by market conditions, which include factors such as seasonality, fuel costs, and competition. He noted that airfare pricing is dynamic and varies depending on how far in advance tickets are purchased. Tickets bought well in advance are generally cheaper than those bought closer to the travel date.
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The minister also addressed concerns about high fares during peak seasons and holidays, stating that the government does not regulate airline fares. Instead, airlines set their own tariffs based on various factors, including operational costs and market conditions.
Under Rule 135(1) of the Aircraft Rules, 1937, airlines are permitted to set their own tariffs, considering factors like service characteristics and general tariff trends. The Directorate General of Civil Aviation’s (DGCA) Tariff Monitoring Unit (TMU) ensures that fares are consistent with those set by the airlines.
Naidu confirmed that there are currently no plans to change the existing regulations governing airfare. The ministry will continue to monitor the situation and address any concerns as they arise.
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