'Airlines companies decide the airfare', Central Government's reply in Kerala HC

The Central Government told the Kerala High Court that air travel fares are decided by the airline companies themselves. Fixing the fares of airlines is not under the control of the government.

The Center told the Kerala High Court on Friday that airline companies are completely free to decide the airfare as per their operating costs. The government cannot interfere in this decision of the airline companies nor does it decide the airfares.

In an affidavit, the central government said that fixing fares by airlines is a global practice, which is based on competitive pricing, supply, demand, and other factors. Therefore, airline companies are completely free to charge airfares. The government neither interferes in the commercial aspects of the airlines nor in the fixing of airfares by them.

During the festive season, the fares have been increased by the airline companies. In this regard, Jainuabidin filed a petition in the Kerala High Court. In response to this, the Central Government presented its stand by filing an affidavit in the Kerala High Court.

The central government said that dynamic pricing plays an important role in determining how airlines improve their revenue per flight. According to the government, passengers who book closer to the date of travel may not get the lower fares, as the queue for these lower fares is already booked.