According to the minister, dynamic pricing is an internationally accepted practice and is necessary for expanding aviation connectivity.
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The Centre will explain to the Supreme Court that the existing rules and regulations governing domestic airfares are based on a dynamic pricing framework, which remains essential for the growth of the aviation sector, said Civil Aviation Minister Kinjarapu Ram Mohan Naidu.Speaking on the sidelines of an industry event here on Thursday (July 16, 2026), the minister in a reply to a question said the Centre would present its rationale behind permitting dynamic airfare pricing before the apex court.According to the minister, dynamic pricing is an internationally accepted practice and is necessary for expanding aviation connectivity.International Practice“Aviation is an industry that we are moving forward with the help of dynamic fare pricing because it is an international practice. Everywhere it happens that if we want to move forward with aviation or connectivity, then we should provide the dynamic pricing facility to the airlines, which we are extending in India as well,” he said.However, Naidu said the Ministry of Civil Aviation intervenes whenever it finds that airfares are rising beyond acceptable levels or where instances of predatory pricing are noticed.Besides, the minister cited instances such as the Pahalgam situation, the IndiGo operational disruption and the Kumbh Mela, where the government stepped in to regulate fares.Fare Regulation“Whether it is in relation to Pahalgam, or in relation to IndiGo crisis, or in relation to Kumbh, whenever we feel that predatory pricing is happening, then we have put a restriction that this pricing should be regulated,” Naidu said.Currently, airlines continue to determine fares under the prevailing dynamic pricing framework. The Directorate General of Civil Aviation (DGCA) also monitors airfare trends and requires airlines to maintain transparency in fare display.The minister, however, reiterated that retaining a dynamic pricing framework remains important for the aviation sector.Published on July 16, 2026
