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Govt has no plans to regulate airfares, may cap prices during emergencies
Sentiment: NeutralHigh Priority
What Happened?
The government will not regulate airline ticket prices under new rules but may impose fare caps during emergencies, according to a senior official. The new rules are expected to be published soon.
Key points
- The government plans to introduce new rules for airline pricing without regulating routine fares.
- Airlines must submit fare structures to the Directorate General of Civil Aviation (DGCA) a month in advance.
- Fare caps may be imposed during extraordinary situations to prevent hardship to passengers.
- Airfares have risen significantly due to increasing aviation turbine fuel (ATF) costs.
- IndiGo, Air India, and others have raised fuel surcharges in response to rising ATF prices.
Key insights
- The lack of regulation may lead to higher fares during peak travel times.
- Imposing fare caps could help protect consumers during crises.
- The rising ATF prices may continue to challenge airlines' pricing strategies.
Why it matters
The decision may affect passengers' travel costs during emergencies.
Source
Business Standard
