(IBNS): Airlines will be free to decide what to charge passengers from Aug 31, the government announced in a big decision to remove airfare caps which were placed since the beginning of the pandemic.
Airlines have been reporting large losses but reports said that with no restrictions on fares now – both upper and lower limits have been removed – there might be discounts on tickets to ensure that the volume of passengers increases.
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Announcing the big move, Civil Aviation Minister Jyotiraditya Scindia tweeted: “The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel. Stabilisation has set in & we are certain that the sector is poised for growth in domestic traffic in the near future.”
The government, in a rare move, had regulated fares by imposing a minimum and maximum band based on the flight’s duration to prevent ticket prices from spiking due to massive demand arising from an easing of restrictions on air travel.
The aviation industry was one of the worst hit during the pandemic.
