Covid-19 pandemic: Govt cuts airline capacity to 50% from June 1

Decision divides industry with experts calling it interference in commercial freedom of airlines

The government has cut down capacity for airlines to operate from 80 per cent to 50 per cent from 1st June in order to safeguard viability of airlines with weak finances. Simultaneously it has increased the upper cap of airfare to go up by around 14 per cent due to the rise in fuel prices.

“In view of sudden change in the number of Covid-19 cases, and decrease in number of passengers and reduced occupancy, the existing capacity cap of 80 per cent is reduced to 50 per cent,” the Ministry of Civil Aviation said in an order.

The directive