No airfare cap, but govt to curb sharp fare hikes in 'exceptional' situations

NEW DELHI: India has no plans to regulate or cap airfares in the free market under which airlines here operate under the new airfare policy being finalised. However, it will keep a “strong lever” on airlines to ensure they don’t resort to very sharp surges in “exceptional and extra ordinary circumstances” that see demand rising for certain routes.The new policy will require airlines to determine charges based on their “cost of operations.” Airlines will submit a range of fares charges on different routes to the DGCA periodically. This will help ensure no one beyond the maximum given fares.The Centre had on Friday informed the Supreme Court that administrative approval has been granted to the rules under the Bharatiya Vayuyan Adhiniyam, 2024, and they are likely to be published within two weeks.“We are on the verge of finalising the new rules.