The IATA Agents Association of India (IAAI) has urged the Government to permanently institutionalise domestic airfare caps, calling the move crucial for stabilising fares and protecting India’s tourism growth trajectory.
In formal representations submitted to Union Ministers Kinjarapu Rammohan Naidu and Gajendra Singh Shekhawat, the association highlighted the growing volatility in domestic ticket pricing driven by aggressive dynamic fare models. It noted that steep price spikes during festivals, school reopening periods and emergency situations are disrupting travel demand and weakening regional connectivity.
IAAI emphasised that affordable and predictable pricing is essential to unlock India’s vast domestic tourism potential, particularly across Tier-2, Tier-3 and remote destinations aligned with the UDAN vision of inclusive air travel. The association warned that erratic fares—often higher than comparable international routes—risk eroding passenger confidence and undermining State-level investments in tourism infrastructure.
Referring to recent operational disruptions and pilot shortages, IAAI said the temporary fare band of ₹7,500–₹18,000 effectively curbed exploitative surge pricing and ensured passenger protection. It argued that current stable operations and moderate aviation fuel prices demonstrate that calibrated regulatory oversight does not compromise airline viability.
Biji Eapen, National President of IAAI, said, “With over 5.3 lakh passengers flying daily across 164 airports and domestic traffic projected to reach 40 crore by 2029, affordable and transparent airfares are essential for inclusive aviation growth. A predictable pricing framework will strengthen regional connectivity, protect passengers and support sustainable expansion of India’s tourism economy.”
IAAI has called for a legally enforceable fare ceiling, safeguards against monopolisation on regional routes, and structured consultations with recognised passenger and trade bodies in future airfare policy decisions.
