The central government has hinted that capping airfares would have an adverse impact and could increase the cost of travel for as much as 99 percent of passengers.
"Pricing deregulation has allowed competition to bring down prices dramatically in India, making it one of the lowest-fare markets in the world," a statement from the Ministry of Civil Aviation read as quoted by PTI.
Recently a report was tabled in Lok Sabha which suggests an upper limit for airfares and recommends not to levy more than 50 percent of the base fare for ticket cancellation.
Earlier in December, aviation regulator, Directorate General of Civil Aviation (DGCA) can no longer charge a flat Rs 3,000 for cancellation of tickets. According to the rules, the cancellation charges should not exceed the base fare and fuel surcharge.
"We believe cancellation charges are on the high side and onerous for passengers. The Rs 3,000 fee is in many cases more than the price of the ticket itself. Our UDAN (subsidised regional flying) scheme has capped fares at Rs 2,500 per hour of flying. These cancellation charges need to be brought back into balance," minister of state for civil aviation Jayant Sinha then said.
07/01/18 Himadri Ghosh/IBTimes
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"Pricing deregulation has allowed competition to bring down prices dramatically in India, making it one of the lowest-fare markets in the world," a statement from the Ministry of Civil Aviation read as quoted by PTI.
Recently a report was tabled in Lok Sabha which suggests an upper limit for airfares and recommends not to levy more than 50 percent of the base fare for ticket cancellation.
Earlier in December, aviation regulator, Directorate General of Civil Aviation (DGCA) can no longer charge a flat Rs 3,000 for cancellation of tickets. According to the rules, the cancellation charges should not exceed the base fare and fuel surcharge.
"We believe cancellation charges are on the high side and onerous for passengers. The Rs 3,000 fee is in many cases more than the price of the ticket itself. Our UDAN (subsidised regional flying) scheme has capped fares at Rs 2,500 per hour of flying. These cancellation charges need to be brought back into balance," minister of state for civil aviation Jayant Sinha then said.
07/01/18 Himadri Ghosh/IBTimes
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