India has one of the best airfare regimes; there should be no 'gouging': Akasa Air CEO

India has one of the best airfare regimes in the world, but there should not be “gouging” in terms of ticket prices to take advantage of a particular situation, according to Akasa Air CEO Vinay Dube

India has one of the best airfare regimes in the world, but there should not be "gouging" in terms of ticket prices to take advantage of a particular situation, according to Akasa Air CEO Vinay Dube.

His comments come against the backdrop of concerns about a steep rise in airfares in certain routes amid capacity reduction due to the Go First crisis and higher travel demand, and the government asking airlines to devise a mechanism to ensure a reasonable ticket pricing system.

India is one of the world's fastest-growing aviation markets, and domestic air traffic is recovering strongly after the coronavirus pandemic.

Mr. Dube, also the founder of Akasa Air, said the Civil Aviation Ministry has an excellent point in terms of gouging and is not talking about average fares in India, like equivalent to $45 or 50, which is too high.

"Gouging is what the government is worried about... as an airline fraternity, we should ensure that there is no gouging," Mr. Dube told PTI in an interview in Istanbul.

He explained that gouging is a particular term used when anybody really jacks up the price of something to take advantage of a particular micro-environmental situation.

"Gouging is just not a good thing. The airfares on an average in India are the most customer friendly in the world in any kind of sizeable aviation economy. The Indian consumer average has one of the best airfare regimes you can find anywhere in the world. That is a fact and we have some of the cheapest average fares anywhere in the world," he pointed out.