Thursday, June 11, 2020

Can't expect normal free-market principles in crisis situation: CCI chief on capping of airfares

New Delhi: Amid the civil aviation ministry temporarily capping airfares, Competition Commission Chairperson Ashok Kumar Gupta has said it would be inappropriate to expect and apply normal principles of free-market during the crisis situation due to COVID-19.

His comments come at a time when there are temporary caps and floors on air ticket prices after domestic flight services resumed on May 25.
Flights were suspended from March 25 due to the nationwide lockdown to curb spreading of coronavirus infections.

International flights are yet to commence operations.

In an e-mail interview, Gupta said all regulators are addressing the situation arising out of COVID-19 appropriately through suitable actions.

"As far pricing caps put in place by the civil aviation ministry, I can only say that these are not normal times and it would be inappropriate to expect and to apply general and normal principles of free market during the crisis situation," he told PTI.

Generally, airfares are determined on the basis of market demand and they are deregulated.
11/06/20 PTI/New Indian Express

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