India unlocks aircraft leasing potential with key bill, eases lessor fears after GoFirst fallout, BA

Virtually ruling out the possibility of capping airfares, Civil Aviation Minister K Rammohan Naidu on Tuesday said there should be a balanced approach to ensure that air ticket prices remain reasonable and airline business also does not turn unviable. Acknowledging that airfare is a very contentious topic of discussion, the minister also asserted that the government will take action in case there are any malpractices with respect to pricing of air tickets.

He made the remarks in the Rajya Sabha while replying to the discussion on the Protection of Interests in Aircraft Objects Bill, 2025. The bill was later passed by the Upper House.

“When it comes to airfares it is a work in progress and a lot of things need to come into place… so capping the airfares and trying to have a one-stop approach is not followed by any country,” Naidu said.

Elaborating further, the minister said if one tries to break down the airfare itself, there will be hundreds of things which affect the prices, including ATF cost and leasing charges.

“We are trying to have dynamic airfare pricing, and definitely inside that if there is anything, for which malpractices are there, misusing or misutilisation or taking advantage of the market is there, definitely the ministry of civil aviation is going to take necessary actions. We are going to ensure those kinds of situations do not arise,” he said.

Emphasising the need for a balanced approach, he said all airlines are in the negative except IndiGo and so it is important to see that the airlines also perform.

He also spoke on various other issues raised by members in his reply. On establishment of an airport in Warangal, Telangana, he said, “With the support of state government we were able to grant the site clearance and very soon we are going to start the work in Warangal airport also and very soon we plan on building one of the best airports in the country in Warangal”.

Naidu also responded to requests made by Kerala Chief Minister Pinarayi Vijayan as well as several members of Parliament of both Lok Sabha and Rajya Sabha for a Point of Call at the Kannur Airport in the state. He said he will definitely look into it, adding, however, that the government wants Indian airports function as hubs.

The minister said there was a need to have a very balanced approach when we think about giving the Point of Call for a new destination. “But I agree to the demand because this is a demand which has been there across the country and we are going to see what best we can do.”

The minister also highlighted the need for second airports in metropolitan cities across the country. “We have come to that stage where all the metropolitan cities Bengaluru, Delhi, Mumbai, Chennai, Kolkata, all these require second airports. We have come to that stage where all the metropolitan cities are getting saturated and they require new airports.”

On UDAN scheme, Naidu informed that the government wants to link 120 new destinations to it and make four crore people travel under the scheme. “So from 2026 to 2036, we are going to see an expanded UDAN scheme through which we want to build 120 new destinations in the country. We want to make 4 crore people travel under the UDAN scheme…”

On the debate regarding the prices of essentials like food, tea, coffee and water in airports, the minister said after Kolkata, UDAN Yatri cafes will start in eight more airports across the country, adding that the government wants to start them in all airports throughout India.