The Civil Aviation Ministry on Wednesday announced that it is doing away with the fare caps for domestic airlines from August 31, 2022. 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 pent-up demand arising from an easing of restrictions on air travel.
After the coronavirus pandemic rattled the country’s civil aviation space, the sector is now in recovery mode, especially in terms of the number of air travellers and Akasa Air has also started services, becoming the first domestic carrier to launch operations in the last eight years.
— DGCA (@DGCAIndia) August 10, 2022
Civil Aviation Minister Jyotiraditya Scindia in interview to PTI on Tuesday said that the government will certainly re-evaluate the fare cap in place for domestic airlines once there is a healthier environment in terms of jet fuel prices.
