look news india
Just before the arrival of India’s biggest and most awaited festive season—Diwali, Dussehra and Chhath Puja—a big relief news has come to the fore for common travelers, expatriates and the middle class of the country. Lakhs of passengers traveling to their ancestral homes and far-flung cities on this auspicious occasion of festivals often had to bear the heavy financial burden of skyrocketing and arbitrary air fares charged by airlines. This time, taking cognizance of this serious problem, the Central Government has issued a very strict and blunt message to all the major domestic and private airlines of the country. The Civil Aviation Ministry has made it clear that during this festive season, airline companies will have to keep their fares within a reasonable and logical range, so that the general public does not have to become victims of financial loot in the name of festive travel. Due to this strict stance of the government, the turmoil in the aviation market has intensified.
Civil Aviation Minister Ram Mohan Naidu’s big statement: Passengers should not be burdened with fares during festivals.
Addressing the media during a high-level event organized in Delhi, Union Civil Aviation Minister Ram Mohan Naidu clarified that during the festive season and holidays, the Aviation Ministry is in constant touch with the top management of the airlines and high-level meetings are held from time to time. It is a clear insistence and moral pressure of the government that the citizens who want to return to their families on the auspicious occasion of festivals should not have to bear the heavy burden of expensive air tickets. However, on a practical level, it is also a bitter truth that private airlines in the Indian aviation sector mainly work on the principles of market demand and supply, and under the present legal framework the government cannot directly impose price controls or legal limits on fares beyond a certain limit. As soon as there is a sudden surge in demand, private airlines increase the ticket prices manifold under dynamic pricing, due to which in the last years around Diwali and Dussehra, air fares on many major metros and routes were recorded more than double than on normal days.
Historic expansion of Udaan-2 scheme: Agreements with 21 states, announcement of huge investment of ₹ 60,000 crore
Union Minister Ram Mohan Naidu made these important announcements after the official launch of the new phase of the regional connectivity scheme ‘UDAN’ i.e. ‘UDAN-2’ and signing of Memorandums of Understanding (MoUs) with various states. The scope of this prestigious ‘Udaan’ scheme, which aims to connect the far-flung untouched areas, small towns and semi-urban areas of the country directly by air and fulfill the dream of affordable and accessible air travel to the common citizen of the country, has now been further expanded for the next ten years. Under this new phase of UDAN-2, unprecedented coordination is being seen between the Central Government and the State Governments. In the initial phase, 21 states and union territories of the country have signed formal agreements with the central government under this scheme, while five other states including Bihar, Chhattisgarh, Himachal Pradesh, Assam, Rajasthan, Odisha and Andhra Pradesh have also said that they will formally approve it very soon.
Construction of 100 new airports and 200 modern helipads: Wings to development in aviation sector
Laying out the detailed financial blueprint, the Civil Aviation Minister said that under the UDAN-2 scheme, a huge capital investment of about Rs 30,000 crore will be made by the Central Government alone, while there is every possibility of an equivalent investment of about Rs 30,000 crore by the respective state governments. Thus, through this ambitious plan, a new path will be paved for a record investment of Rs 60,000 crore in the entire aviation and aerospace sector of the country. This huge investment will transform the infrastructure across the country, under which around 100 new and modern airports will be built and 200 new helipads will be developed to ease mobility in remote hilly and coastal areas. The Ministry has also targeted that the construction of each new infrastructure related to the aviation sector should be completed within a maximum time frame of 18 months. It is noteworthy that during the initial phases of the original UDAN scheme, more than 90 new airports have been successfully constructed in the country, due to which more than 1.68 crore common passengers have availed the benefit of air travel at very affordable rates.
Skyrocketing prices of ATF and West Asia crisis: main reasons for increase in fares
Answering a question related to control of air fares during the festive season, the Aviation Minister clarified that not only profiteering but also global geopolitical circumstances are responsible for the fares remaining high. He said that since the ongoing serious military and diplomatic crisis in West Asia (Middle East), international and domestic prices of aviation turbine fuel (ATF) have increased rapidly. ATF alone accounts for about 43 percent of the total operational cost. It can be easily estimated to what extent even a slight increase in jet fuel prices can adversely affect the financial balance and budget of any airline in the country. This high cost of fuel ultimately impacts ticket prices.
Brainstorming on Adani Group’s airline proposal: Government in favor of adopting a balanced approach
When asked by the media about the proposal and prospects of starting a new airline service by industry giant Adani Group, the Civil Aviation Minister clarified that the government has not yet taken any final formal decision on the proposal. At present the Ministry is closely considering what could be the practical advantages and disadvantages of simultaneously operating Airport Infrastructure as well as Airline Services by the same business group. The minister said that the government wants more and more airlines to enter the aviation market of the country, so that healthy competition increases and passengers have more and more options to travel. If any new investor shows interest in this sector, the government welcomes his ideas and investment. However, if the same company controls both the airport and the airline, it will be imperative to put in place strong systems and regulatory mechanisms to prevent potential conflict of interest or any kind of uncontrolled monopoly in the market.
Clarification of existing rules: No general restrictions on operators other than Delhi and Mumbai
Clarifying the legal position, the Minister also said that there is no such provision or restriction in the existing rules of the country which completely prevents any airport operator from starting a new airline. Such special restrictions or conditions are limited only to the rules governing the original privatization agreements and concession agreements of the major metropolitan cities of the country—particularly the Indira Gandhi and Chhatrapati Shivaji Maharaj International Airports of Delhi and Mumbai. Such nationwide general restrictions do not apply to any other private airport operator. This is why the Ministry is adopting a completely balanced, fair and transparent approach instead of taking any hasty decision on this sensitive subject. This blunt warning from the government before the festive season and these plans to expand airports across the country clearly show that the Indian aviation market is moving rapidly towards becoming more accessible, safe and well-organized for consumers in the coming days.