DGCA Relents After Airlines Push Back On Sharing Fare Data
For now, the aviation regulator will study the aggregate data submitted by airlines to analyse the airfare trend amid concerns around ticket-price spikes, especially during major events.
The aviation regulator has reconsidered its stance on the mandatory sharing of data for every ticket sold in the past two years by airlines after a pushback from carriers, which raised concerns about potential impact on their competitive strategies and operational confidentiality.
Initially, the Directorate General of Civil Aviation requested airlines to submit granular data, including fare details, booking dates, base fares and total passenger count per flight. However, airlines like Air India, IndiGo and SpiceJet — represented through the Federation of Indian Airlines — argued that the requirement to disclose detailed fare information could undermine their competitive edge and lead to unintended consequences in pricing strategies. Instead, they agreed to share broad metrics, based on distance and the percentage of tickets sold under various fare brackets.
After several discussions, the regulator accepted the request from airlines to submit only aggregate airfare data. "The DGCA has kindly accepted FIA's request that member airlines furnish aggregated airfare data to enable DGCA to analyse airfare trends," FIA director Ujjwal Dey said in a statement on Wednesday.
For now, the DGCA will study the aggregate data submitted by airlines to analyse the airfare trend amid concerns around ticket-price spikes, especially during major events like cricket matches, concerts or even festivals, a senior DGCA official said. "If required, we may revisit our stance in future and seek more data."
The development came against the backdrop of India's deregulated airfare, where market forces of demand and supply determine prices. However, the DGCA operates a tariff monitoring unit, set up in 2010, to monitor airfares and ensure that airlines adhere to their declared fare ranges.
The government scrutiny on airfares follows public outrage over soaring fares to Prayagraj during the Maha Kumbh. In the past, the government had intervened, making airlines add flights or slash fares. During Maha Kumbh, the airlines inducted more capacity, which brought down fares to Rs 15,000 after having soared to as high as Rs 40,000 for a one-way Delhi–Prayagraj trip.
Similarly, in 2020, the government imposed minimum and maximum limits on ticket prices based on flight durations to prevent ticket prices from spiking due to pent-up demand arising from the easing of Covid-19 lockdowns. These caps were removed in August 2022.
Recently, a parliamentary panel had also proposed route-specific capping of airfares and setting up of a separate entity to exercise control over air ticket prices, amid concerns in various quarters about surging fares.
