Govt Removes Airfare Caps: Critics Cite Rising Costs.webp

New Delhi, March 21 The government's decision to remove temporary caps on domestic airfares, which were imposed in the wake of IndiGo flight disruptions in December last year, drew criticism from the Congress, which called it a "free pass to loot" air travellers.

AAP convener Arvind Kejriwal also said that airfares could go beyond the reach of the middle class due to the decision and stressed that air travel is no longer a luxury but a necessity.

"This is bad news for air travellers. The Modi government has removed the maximum limit of 18,000 rupees on domestic airfares—it's giving airlines a free pass to 'loot'."

"You'll remember—during the Indigo crisis, they charged 50 to 80 thousand rupees per ticket. Now, airlines will once again be able to extract arbitrary fares from you in the name of rising demand," the Congress posted on X on Sunday.

Kejriwal said that the Centre should regulate air fares in view of the necessity of air travel.

"The removal of the cap on domestic airfares by the Ministry of Civil Aviation has raised serious concerns over rising travel costs," said the former Delhi CM.

"This move would push air travel beyond the reach of the middle class. The decision, which comes into effect from March 23, would potentially trigger a sharp rise in airfares," he said.

In a post on X, Kejriwal said, "Airfares are increasingly going out of reach for the middle class. The Modi government is removing the cap on airfares, which might trigger high inflation in ticket prices."

The government should instead work to regulate airfares more efficiently. "Air travel is no longer a luxury, it's a necessity for the middle class," he added.

The removal of airfare caps will be effective from March 23, according to an order issued by the civil aviation ministry.

The removal also comes at a time when airlines are facing significant operational disruptions in international routes due to the West Asia conflict.

In the order, the ministry said that airlines are required to exercise pricing discipline and act responsibly.

"Airlines shall ensure that fares remain reasonable, transparent and commensurate with market conditions, and that passenger interests are not adversely impacted," it said.

The ministry also stressed that any instance of excessive or unjustified surge in fares, if observed particularly during periods of peak demand, disruptions, or exigencies, would be viewed seriously.

The ministry is monitoring airfare trends in real-time.

According to the order, the temporary caps on domestic airfares were imposed on December 6 to contain an abnormal surge in ticket prices arising out of large-scale flight disruptions of IndiGo.

"... The prevailing situation has since stabilised, with restoration of capacity and normalisation of operations across the sector. Upon review, it has been decided that the fare cap imposed vide the aforesaid letter shall stand withdrawn with effect from 23rd March, 2026," the order said.
 
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air travel airfare caps airline pricing civil aviation ministry domestic airfares fare regulation flight disruptions india india government indigo march 23, 2024 middle class pricing discipline travel costs west asia conflict
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