There should be an upper ceiling on airfares: Chairman of Travel and Tourism Committee

New Delhi: As airfares reach unprecedented heights during peak seasons such as festivals and summer vacations, industry leaders are calling on the government to implement measures to control the surge.

The demand for regulatory intervention comes amidst concerns over escalating costs and the need to ensure affordable travel options for the general public.

The Chairman of the Travel and Tourism Committee of the Indian Chamber of Commerce, Subhash Goyal, has made a fervent appeal to the government to reinstate upper ceiling on fares.

Goyal attributes the skyrocketing prices to various factors, including the recent crisis faced by Vistara and the suspension of Go First operations, all contributing to supply and demand imbalances in the aviation sector.

In a statement addressing the issue, Goyal emphasized, "The prices are always demand and supply. When the demand goes up and supply doesn't increase, the prices rise. Free market economy doesn't mean that you start exploiting the consumer."

He further added, "After Covid, the government had put an upper ceiling on domestic airfare. I think that ceiling should be reintroduced because if the direct operating cost between Delhi and Mumbai of an aircraft is Rs 4000, then you give them Rs 8000, Rs 12000, Rs 16000, 200-300 per cent profit, but there should be an upper ceiling."

Goyal stressed the essential nature of air travel in contemporary times, citing reasons such as visiting dying relatives, seeking medical treatments like cancer treatment, and other urgent matters.

He likened air travel to rail travel, asserting that it has become a necessity rather than a luxury. Consequently, he urged the government to intervene and implement an upper limit on airfares to ensure affordability and accessibility for all segments of society.

Goyal said, "People are travelling to see dying relatives, for cancer treatment, for all sort of things. So just like rail travel is essential, air travel has also become an essential, it no longer is a luxury. Therefore I strongly appeal to the government that there should be an upper ceiling on air fair."

Meanwhile, the escalating costs of Air Turbine Fuel (ATF) have compounded the issue, adding further financial strain on airlines.

According to airline fuel retailers, the cost of fuel is expected to rise significantly, necessitating an increase in ticket prices to offset operational expenses.

On April 1, Indian Oil released updated figures revealing a substantial surge in aviation turbine fuel (ATF) prices across major metropolitan areas, signaling further challenges for the aviation industry already grappling with economic uncertainty.

The sharp rise in fuel costs has compelled airlines to adjust ticket prices, intensifying concerns over the affordability of air travel for passengers.

According to Indian Oil's latest data, ATF prices for domestic airlines in metros have witnessed notable increases. In Delhi, prices have climbed to Rs 1,00,893.63 per kilolitre (Kl), while in Kolkata, they have surged to Rs 1,09,898.61/Kl.

Similarly, in Mumbai and Chennai, ATF prices have risen to Rs 94,466.41/Kl and Rs 1,04,973.36/Kl respectively. These price hikes come at a time when airlines are already facing significant financial pressures due to various industry challenges.

For airlines operating international routes, the updated ATF prices in dollars per kilolitre (Kl) paint a similar picture of escalating costs. In Delhi, the price stands at USD 918.01/Kl, while in Kolkata, it has risen to USD 956.91/Kl. Meanwhile, Mumbai and Chennai have seen prices surge to USD 917.28/Kl and USD 913.83/Kl respectively.

ATF prices have been hiked across major metropolitan cities. In Delhi and Kolkata, the prices for domestic airlines reached Rs 1,00,893.63/Kl and Rs 1,09,898.61/Kl respectively on March 1. (ANI)

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