‘We want Made-in-India aircraft’: Aviation Minister tells Lok Sabha, says govt can cap airfares only in extraordinary situations

Union Civil Aviation Minister Ram Mohan Naidu on Friday (Dec 12) said that the government will roll out a programme to make aircraft in the country, stressing that India needs domestically manufactured aircraft to fulfil the growing demands of the aviation sector. He informed the parliament that Hindustan Aeronautics Limited is exploring the possibility with the Russian Aircraft Company Sukhoi SJ 100 to get the technologies to make the aircraft in the country.

Responding to a private member resolution, Appropriate Measures to Regulate Airfare in the Country, the minister stressed that the availability of aircraft is a serious issue, as few global players are manufacturing these aircraft.

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On the subject of the government's mechanism to regulate airfare, Naidu said that while India's aviation operates in a deregulated environment, the government retains authority to cap airfares during extraordinary circumstances under the Aircraft Act.

"While India’s aviation market is deregulated, the government retains powers under the Aircraft Act to cap fares in extraordinary situations. Examples include COVID-19, Mahakumbh, Pahalgam-Srinagar crises, and the recent Indigo disruption."

On December 6, the Centre had put an upper limit on the ticket prices for economy-class domestic travel, fixing maximum airfares based on stage length to prevent overcharging during the IndiGo crisis. For routes up to 500 km, the fare cap is set at Rs 7,500, while flights between 500 and 1,000 km cannot exceed Rs 12,000. Routes covering 1,000 to 1,500 km have a maximum limit of Rs 15,000, and any journey beyond 1,500 km is capped at Rs 18,000.

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He further said the government intervenes only to protect passengers' interests while making sure that competition in the market remains unaffected and new players can enter the market.

“We have seen that multiple airlines have come in, and multiple challenges for airlines. But the idea still remains that if the civil aviation and aviation sector if it needs to grow, the first and foremost thing is to keep it deregulated, so that the competition survives and more players can come in,” he said.

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Naidu's comments in the Lok Sabha came following a massive disruption in airline operations in the country triggered by the dominant domestic player IndiGo cancelling over thousands of flights between December 2 to 9, leading to crowding of airports and thousands of travellers being stranded across the country.