Cap on airfares unlikely to impact carriers' pricing regime: Report

The government's decision to temporarily regulate airfares to pre-empt any attempt by the airlines to jack up ticket prices in view of the reduced capacity is unlikely to impact if not boost the current pricing regime of the carriers, a report said.

After remaining under suspension for two months in the wake of the coronavirus lockdown, domestic commercial flight operations would resume on May 25. Initially, airlines would operate with one-third of the capacity.

Justifying the capping of airfares, which would be in force for three months, Minister State for Civil Aviation Hardeep Singh Puri had on Thursday said, "If the prices were not fixed, then it was entirely conceivable, but I am not saying that it would have happened, that fares would have skyrocketed and remained very high."
Citing the example of a Mumbai-Delhi flight, which comes under band D (90-120 minutes)that has a fare band of Rs 3,500-10,000, it said, "Our airfare tracker suggests that normal band rates for the same route stands at Rs 2,200-9,300."