Govt not to cap airfares for festive season, will advise airlines to keep rates reasonable: Naidu

NEW DELHI: The government will not cap airfares for the upcoming festive season but will advise airlines to keep the prices reasonable, Civil Aviation Minister K Rammohan Naidu said on Tuesday, even as he mentioned that operating costs for aviation companies have risen due to higher fuel costs.

Talking to reporters on the sidelines of signing pacts for the next phase of Udaan, the minister said that in the past also, the government has handled the price situation in terms of festivals or important events.

"We engage with the airlines continuously; we also have regular meetings with them. And we definitely point it to them that during this festive season, you have to ensure that the fair prices are kept at a reasonable level so that the people who want to travel, especially in these important times, get to see the benefit," the minister said.

He was responding to a question if government would impose a cap on airfares during the forthcoming festive season.

He further said that the ongoing West Asia crisis has driven the ATF prices forward.

Fuel accounts for a massive portion of an airline's operating expense structure.

"This is not necessarily because of the festive season or anything, but there is an ongoing crisis situation," he said.

Naidu said ATF makes up 40 to 43 per cent of airfares and even a small rise in fuel costs directly pushes up ticket prices.