Wednesday, August 04, 2021

Rise in passenger traffic in August once again triggers debate on removal of fare caps

Some domestic airlines are again knocking on the doors of the government, seeking a return of the free market regime in the Indian aviation industry.

The fresh demand to remove fare caps comes after the industry saw 2,065 flights take to the skies on August 2, carrying around 269,713 passengers, on a day when the central government delayed announcing a fare band after the earlier price caps expired on July 31. While the ministry of civil aviation has, till now, favoured protectionism after reopening the Indian skies on May 25, 2020, the government may now be forced to rethink its strategy.

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