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Parliamentary Panel Suggests AI-Pushed Stringent Airfare Regulation Mechanism

by Index Investing News
March 26, 2025
in Financial
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A parliamentary panel has really helpful a brand new artificial-intelligence-driven stringent airfare pricing regulation mechanism for monitoring airfares, saying the present regulatory framework beneath the DGCA lacks the capability to proactively regulate them.

In its 375th report, Calls for for Grants (2025–26) of Ministry of Civil Aviation, the Division-Associated Parliamentary Standing Committee on Transport, Tourism and Tradition additionally really helpful that the Directorate Normal of Civil Aviation be empowered with quasi-judicial authority to impose non permanent worth caps or penalties on airways partaking in “exploitative” practices.

The panel, headed by JDU MP Sanjay Kumar Jha, has additionally really helpful growing a cellular utility, Airfare Vigil, on the strains of the cVIGIL cellular app of the Election Fee, to empower residents to report situations of arbitrary airfare pricing.

The timeline for implementation ought to span 18–24 months, with Section I specializing in high-traffic routes inside six months and nationwide rollout accomplished by 2026, as per the report, which was tabled within the Lok Sabha and introduced within the Rajya Sabha on Tuesday.

“The Committee, whereas analyzing the Demand for Grants of the Ministry of Civil Aviation for 2025-26, recommends the institution of a stringent airfare pricing regulation mechanism beneath the framework of an AI-powered predictive monitoring system, tentatively named AirPrice Guardian,” the Parliamentary panel mentioned in its report.

This technique ought to intention to handle shopper grievances associated to unpredictable and exorbitant airfare surges, significantly throughout peak journey durations and emergencies, whereas guaranteeing transparency and equity in pricing practices, it mentioned.

“The Committee notes that the present regulatory framework beneath the Directorate Normal of Civil Aviation lacks the capability to proactively monitor and regulate airfare traits, necessitating a transformative method leveraging superior know-how,” it acknowledged.

It additionally mentioned that the proposed AirPrice Guardian system will utilise machine studying algorithms and predictive analytics to forecast airfare traits based mostly on historic knowledge, demand patterns, gasoline prices, seasonal fluctuations and exterior components similar to festivals or emergencies.

By establishing dynamic fare bands for every route, up to date quarterly by way of predictive fashions, this technique will empower regulators to watch deviations in real-time and take preemptive motion in opposition to extreme pricing, the parliamentary panel mentioned within the report.

The committee really helpful that the “DGCA be empowered with quasi-judicial authority to impose non permanent worth caps or penalties on airways partaking in exploitative practices”.

Moreover, the report acknowledged, a Pricing Transparency Index ought to be developed to fee airways on their adherence to truthful pricing norms, with this data made publicly out there by way of a consumer-facing portal.

The committee additionally really helpful that the present Tariff Monitoring Unit inside the DGCA be revamped with AI-driven instruments for real-time knowledge evaluation and anomaly detection.

In alignment with the ministry’s concentrate on regional connectivity beneath the regional connectivity scheme, UDAN, the committee “underscores that airfare monitoring should prolong to underserved routes to forestall extreme fares that undermine accessibility”, it mentioned.

A portion of the funds ought to be allotted for this scheme and that ought to be utilised to combine fare monitoring mechanisms into regional connectivity initiatives, the report acknowledged, including that this may be sure that reasonably priced air journey stays a cornerstone of India’s aviation progress technique.

Highlighting the necessity for public consciousness campaigns to coach customers about their rights beneath this new regulatory framework, the committee really helpful the event the cellular app, saying this app will permit customers to add proof similar to screenshots of ticket costs and contextual particulars, with options like real-time geo-tagging, automated criticism monitoring, and time-bound decision mechanisms.

Upon submission, customers will obtain a novel ID to trace their criticism standing, guaranteeing transparency and accountability, it mentioned.

Moreover, the app will even embody safeguards in opposition to misuse, similar to filtering duplicate or frivolous complaints, whereas permitting nameless submissions to encourage wider participation, the committee mentioned in its report.

Airfare Vigil shall be built-in with the AI-powered AirPrice Guardian system, enabling citizen studies to enhance predictive analytics in figuring out exploitative pricing patterns. This initiative will foster participatory governance by involving residents in airfare regulation whereas strengthening the DGCA’s potential to handle shopper grievances swiftly and successfully, it mentioned.

The committee additionally mentioned given the ministry’s total income expenditure allocation of Rs 2,330.3 crore and capital outlay of Rs 70 crore for 2025-26, it recommends reallocating from underutilised allocations (similar to Air India liabilities) towards growing and implementing this airfare monitoring system.

The committee in its report mentioned it believes that implementing ‘Air Worth Guardian’ and ‘Airfare Vigil’ will deal with long-standing shopper grievances concerning airfare volatility whereas fostering transparency and accountability in India’s aviation sector.

“By aligning this initiative with broader coverage targets similar to regional connectivity and sustainable aviation progress, it is not going to solely defend shopper pursuits but in addition strengthen India’s place as a worldwide chief in aviation innovation and regulation,” it mentioned.



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