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HomeNewsBusinessNew aviation minister Ram Mohan Naidu vows to keep airfares affordable for all

New aviation minister Ram Mohan Naidu vows to keep airfares affordable for all

Newly appointed minister pledges to prioritize accessibility and affordability, promising policy initiatives to benefit the common man.

July 16, 2024 / 16:45 IST
Aviation Minister Ram Mohan Naidu

Aviation Minister Ram Mohan Naidu

Soon after taking over as the aviation minister, Ram Mohan Naidu on June 13 announced his commitment to ensuring more affordable airfares for domestic flights.

Addressing the media after assuming office, Naidu stressed that reducing the cost of flying for the common man will be a top priority for the Ministry of Civil Aviation.

"My priority is to create ease of flying for the common man in India," Naidu said, adding that he will ensure that the benefits of the policy schemes from the ministry reach the common man.

In February, a parliamentary committee also proposed that the government should frame guidelines to control sudden surges in airfares, adding that “a route-specific fare ceiling can be examined”.

Airlines say fares are driven by supply and demand. India’s two biggest airlines — IndiGo, which has a roughly 60 per cent market share and Tata Group airlines, which accounts for about 30 per cent — have hundreds of new planes on order, and the government is adding more airports to cater to growing demand.

Also Read : TDP's Ram Mohan Naidu inherits a high-stake job to navigate India's aviation boom amid pressing issues

Last week, aviation consultancy CAPA India had said that the average airfares on the 20 biggest domestic routes had risen 1.3 percent in 2023-24 over 2022-23, but were 34 percent higher when compared to 2019-20.

Moreover, the country's aviation sector has been grappling with global supply chain disruptions, which have delayed plane deliveries and pushed fares higher. Domestic air traffic has grown by 23 percent in 2023, reaching a record 153 million passengers, with analysts forecasting this number to climb to 300 million by 2030.

To achieve these goals, Ram Mohan Naidu said he plans to create a 100-day action plan, which will eventually lead to a long-term vision for the sector aligned with the "Vikashit Bharat" plan, marking 100 years of India's independence.

"We are developing a 100-day plan to address immediate challenges, and from there, we will transition to a long-term vision—the ‘Vikashit Bharat’ plan for the next 100 years of independence," he said, before delving into details.

Also Read: Airfares likely to taper off from July due to capacity addition, slight fall in demand

Key initiatives would include taking the Udaan Scheme forward by connecting more tier 2 and 3 cities, promoting the Digi Yatra facility nationwide, and converting all airports into 100 per cent environmentally friendly facilities, the minister stated.

"We want to make airfare affordable, want to make airways the new Railways of India. The common man is a little bit worried about high ticket prices. We still want to bring more people into air travel," he signed off.

Naidu also said that his priority will be to ensure that the upcoming airport in Bhogapuram is completed in record time by December 2025, and that the airports in Tirupati and Vijaywada start international operations soon.

Team Moneycontrol
first published: Jun 13, 2024 02:52 pm

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