Civil aviation ministry considering mechanism to cap maximum fare

Most airlines are understood to have informally told the govt that they are okay with the proposal

With air fares shooting up in the wake of SpiceJet operations getting disrupted, civil aviation minister Ashok Gajapathi Raju has asked officials to devise a mechanism to regulate fares.

According to this, the highest economy-class fare to any destination will be capped at Rs 20,000. The minimum fare will depend on the break-even cost of each airline. There will be no cap on business-class fares. The mechanism to regulate fares is likely to be devised in about a month's time.

Civil aviation secretary V Somasundaran will hold consultations with stakeholders before the implementation of the scheme. Sources say most airlines are okay with a cap on minimum fares.