I am glad that the government took note of what was happening in the aviation industry and has allowed full capacity to be deployed and the fares could go down, says Jitender Bhargava, Former ED, Air India.
The government has removed restrictions on domestic aviation capacity as demand has surged. This is a notification about 100% capacity. Does this mean that within a few days, the fare cap can will also go away?
This was a very good proactive decision by the government considering the ground realities that the Covid figures are at a very low level, infection is not spreading and on the eve of the festival season more people will travel. Also, there is the matter of revenge travel as people who have been at home for over 18 months want to travel and flights have been going full of late.
I am glad that the government took note of what was happening in the aviation industry and has allowed full capacity to be deployed. So the fares will go down. I quite agree with what has been contended that the government should also do away with fare restrictions and the markets determine the fare levels.
People are eager to travel and seats must be available on flights to all destinations. So, airlines would roll back flights to certain destinations. The government should get airlines to operate flights to every destination that used to operate prior to Covid-19 restrictions on flights.
13/10/21 Economic Times
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