New Delhi: The Directorate General of Civil Aviation (DGCA) has set up Tariff Monitoring Unit (TMU) that monitors airfares on selected 78 routes on a random basis by using airlines websites on monthly basis to ensure that the airlines do not charge airfares outside the range declared by them, the Parliament was informed on Monday.
This covers about 27 per cent of the domestic traffic. By doing so, the TMU plays a critical role in maintaining airfare levels within the boundaries of the airlines’ prescribed tariffs.
“DGCA ensures that the airfare charged by the airlines remain within the boundaries of the established tariff sheets. However, in exceptional circumstances of non-adherence to Sub Rule (2) of Rule 135 of The Aircraft Rules, 1937, necessary directions are being issued to all concerned airlines,” said Murlidhar Mohol, Minister of State for Civil Aviation, in the Rajya Sabha.
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Airfares are not subject to regulation by the government and airlines have the flexibility to determine their airfares based on their operational needs, while adhering to Rule 135 of the Aircraft Rules, 1937.
The pricing of airfares is subject to dynamic fluctuations influenced by the fundamental economic forces of supply and demand. Various determinants such as current seat occupancy, fuel costs, aircraft capacity, seasonal fluctuations and other relevant factors significantly impact airline ticket pricing.
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“Further, the government, proactively engages with scheduled airlines and advises them to augment capacity by deploying additional flights during festival seasons or during events causing surge in demand.
In October 2025, to meet high festive demand, airlines responded by augmenting flight capacities by announcing 1,750 additional flights across 100 sectors. As a result of capacity increase, a general moderation in fares was observed across most of the sectors, informed the minister.
While the government generally refrains from regulating airfares to maintain market competitiveness, however, it remains vigilant oversight role, intervening in exceptional circumstances, such as during the pandemic, Maha Kumbh festival and Pahalgam terror attack, in order to ensure air travel affordable for passengers, said the minister.