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India: India’s major airlines have refused to share detailed airfare data with the Directorate General of Civil Aviation (DGCA), raising concerns over transparency and regulatory oversight. The airlines argue that disclosing such data could lead to competitive disadvantages and potential misuse by external entities.
Regulator’s Request and Airlines’ Response
During a March 3 meeting, the DGCA requested airlines to provide airfare data for flights between 2022 and 2024 to analyze pricing trends and address consumer concerns over fluctuating fares.
In response, the Federation of Indian Airlines (FIA), which represents multiple carriers, declined the request in a March 11 letter. According to the letter, seen by Bloomberg News, airlines raised concerns that exposing sensitive fare data to multiple external agencies, including consultants and third parties, could result in unauthorized disclosures, strategic exploitation, and commercial setbacks.
Concerns Over Market Concentration and Pricing Power
With two major airline groups controlling a dominant share of India’s domestic air traffic, concerns over a duopoly in the market have intensified. Regulators worry that limited competition could lead to pricing power consolidation, especially during peak travel seasons.
The Parliamentary Standing Committee on Transport, Tourism, and Culture has criticized airlines’ self-regulation, calling for route-specific fare caps and the formation of a quasi-judicial body to monitor pricing. The committee believes that without regulatory oversight, passengers may face arbitrary price fluctuations, especially during high-demand periods.
Government’s Stance on Pricing and Regulation
Aviation Minister Jyotiraditya Scindia has emphasized that airfares in India are determined by market forces rather than government regulation. While authorities have urged airlines to ensure fair pricing through self-regulation, growing consumer complaints have led to increased scrutiny.
The DGCA’s push for fare data suggests a shift toward greater transparency in the sector, though airlines maintain that their pricing is already influenced by competition, demand fluctuations, and operational costs.
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