Airfare bands protect interests of airlines, passengers, says Aviation Minister Scindia

Civil Aviation Minister Jyotiraditya Scindia on Thursday said airfare bands serve the purpose of protecting the interests of airlines as well as passengers. Because of the coronavirus pandemic, the civil aviation ministry introduced airfare bands with upper and lower limits as a temporary measure under the Aircraft Act, 1934, he told Lok Sabha in a written reply.

He also emphasised that under normal circumstances, airfares are neither established nor regulated by the government. "The fare bands serve the dual purpose of protecting the interests of the travellers as well as of the airlines, and have been revised from time to time. Fare capping is, presently, applicable on a rolling basis for a 15 days' cycle," the minister said.

With the repeal of Air Corporation Act in March 1994, airlines are free to fix reasonable airfares under Aircraft Rules, 1937. In a separate written reply, Scindia said the estimated losses incurred by airlines in India in 2020-21 was approximately Rs 19,564 crore.