Govt rules out festive airfare cap, urges airlines to keep prices reasonable
The Indian government has decided against capping airfares for the upcoming festive season, opting instead to urge airlines to maintain reasonable pricing. The Civil Aviation Minister noted that rising aviation turbine fuel costs, driven by the West Asia crisis, are the primary factor behind current ticket price increases.
Why it matters
This decision highlights the government's reliance on market-based regulation and dialogue with private carriers to manage consumer costs during peak travel periods.
The government will not impose a cap on airfares during the upcoming festive season but will advise airlines to keep ticket prices at reasonable levels, civil aviation minister K Rammohan Naidu said on Tuesday.Speaking to reporters on the sidelines of the signing of pacts for the next phase of the regional connectivity scheme Udaan, Naidu said the government has handled airfares during festivals and important events in the past by engaging with airlines.Government to engage with airlines on fares"We engage with the airlines continuously; we also have regular meetings with them.
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