Any DGCA move to rein in airfares may not succeed: Industry experts
aviation regulator to control airfares in the country is unlikely to impact rates in the current free market regime, airline executives and industry experts said in reaction to a parliamentary panel's call to take measures to check high fares.
Air ticket prices are expected to rise further due to significant capacity cuts.
IndiGo, the country's largest airline, has grounded 74 planes until December while others including Go First, SpiceJet, Air India group and Vistara grounded 90 planes.
The total number of grounded aircraft is expected to increase to 200 in the coming months from 164 at end December, industry executives said.
Airlines will add 150 planes in 2024, up 34% from last year, but it will still not meet the constantly surging demand for air travel. Domestic air traffic grew 24% on year to 152 million in calendar 2023, according to the latest figures from the DGCA.
Kapil Kaul, chief executive of aviation consultancy CAPA India, said the concerns around high prices may be valid. However, to address such issues, India needs a strong and independent institutional framework for all the consumer and competition-related issues like the civil aviation authority in the UK, he said.
«The DGCA's (Directorate General of Civil Aviation) involvement in airline pricing will not yield anything except it may serve optics,» Kaul said. «The DGCA has intervened many times before and it didn't result in anything structural.»
He also said the rise in fares is a result of demand-supply mismatch. «India, except for the
