Law to be amended to curb airfare hikes

The government has taken steps to amend the law to prevent abnormal hikes in air ticket prices and protect passenger interests, Civil Aviation and Tourism Minister Afroza Khanam told parliament on Thursday.

The minister said any travel agency found charging excessive fares or engaging in syndicate activities would face strict legal action, including cancellation of registration. She made the remarks while replying to a scripted question from ruling party lawmaker Kamruzzaman Kamrul of Sunamganj-1.

Afroza Khanam said the ministry has issued strict directives requiring ticket prices, agency names and licence numbers to be clearly mentioned on tickets in order to curb syndicates and fraudulent practices in ticket sales.

She said Biman Bangladesh Airlines and other carriers consider fuel prices, operating costs, aircraft type, travel date and time, peak and off-peak seasons, passenger demand, seat availability, advance bookings and service quality while setting fares.

“As a result, fares usually rise during periods of high demand and fall when demand is relatively low,” she said.

Explaining the reasons behind fluctuations in domestic airfares, the minister said airlines determine ticket prices under the globally practised “Revenue Management System” or “Dynamic Pricing” model, where fares vary depending on demand, booking time and other operational factors.

She added that the ministry and the Civil Aviation Authority of Bangladesh are holding regular consultations with airlines and travel agencies to ensure that airfares remain within an affordable range for passengers.

The minister said fixed fares are not consistent with free-market principles or international aviation practices. However, she added that Biman, as the national flag carrier, remains committed to keeping domestic airfares affordable and competitive for passengers.