IndiGo Crisis: Naidu claims that because prices increase during festivals, it is not feasible to cap airfares for the entire year.

Civil Aviation Minister K Ram Mohan Naidu stated on Friday that the Central government has the authority to cap airfares during extraordinary circumstances, such as the recent IndiGo meltdown, amid growing concerns over high air ticket prices due to the IndiGo crisis. However, the government cannot cap airfares for the entire year because ticket prices usually increase during the holiday season.

In response to a private member's resolution on "Resolutions: Appropriate Measures to Regulate Airfare in the Country" in the Lok Sabha, the minister discussed the lack of aircraft and mentioned that talks are underway to build aircraft in India.

Congressman Shafi Parambil introduced the resolution, which was subsequently withdrawn. He pointed out that the aviation ecosystem has many levels and different facets, including airline viability.

In response to the IndiGo flight disruptions, the civil aviation ministry placed a distance-based cap on domestic airfares earlier this month. According to Naidu, domestic air ticket prices are still "on par with other nations" and it would not be practical for the government to set a national airfare cap.

He claims that ticket prices usually increase during holiday seasons and that consumers eventually gain from a deregulated market. Additionally, he emphasized that deregulation is still essential to the expansion of civil aviation.

"The first and most important requirement is to keep the civil aviation sector deregulated so that more players can enter the market if we want it to grow." The minister added, however, that the government still has the authority to step in when necessary and that deregulation does not grant the airlines a free hand.

According to Naidu, the ministry may also take into consideration a similar plan for private airlines after examining how much the three-month pilot program of fixed airfares has benefited passengers and receiving feedback.