Domestic airfare cap lifted to deregulate aviation industry: Jyotiraditya Scindia

Bhopal (Madhya Pradesh): Civil aviation minister Jyotiraditya Scindia on Saturday justified the central government's decision to remove domestic airfare upper cap saying deregulating the aviation industry was necessitated in view of Covid-19 impact on the airlines.

But still, he said, there would be a lower cap on the fare to ensure that there was no unhealthy competition among airlines.

Scindia was addressing a conclave virtually, which was organised here by a national media group.

Notably, airfare caps are to be removed with effect from August 31, as per the central government's decision.

Scindia said, "I believe in a free market. (That's why) I have done away with the regulation. We have seen the impact of Covid on the aviation industry as the flight operations were standstill. The airlines needed a safety net, hence the deregulation but we have maintained a minimum fare capping." It was a very peculiar situation the government faced he said and added, "If we regulate the market then we face criticism and if we remove regulation then also we face criticism." In reply to a question he said the airfare and services of airlines in India were one of the best in the world.

On growth in aviation industry he said his main focus was on small cities and reaching out to more and more people in such cities with 20 and 90-seater aircraft.

He said there had been tremendous growth in the industry.

In Madhya Pradesh itself, he said, earlier Bhopal was directly connected with five cities but now it was connected directly with nine cities. Similarly, Indore was now connected with 19 cities including Dubai in comparison to eight cities earlier.

He said out of eight airports in Madhya Pradesh five were operational. "We want to operate more airports here. For now, we have got the bid for Datia, Pachmarhi and Rewa. However, we would require more land for the airports."

He said aviation Industry in India was witnessing exponential growth. "Two more airlines are coming. As of now, we have 14.5 crore domestic and six crore international passengers annually. I hope, we will see 40 crore passengers in the next few years", he added.