According to the Indian government, why won't airfares in India be capped

What is the government's reasoning for rejecting the idea of capping airfares in India?
The Indian government, through the Ministry of Civil Aviation, has rejected the idea of capping airfares in India for a few reasons. These include:
  • Capping airfares could lead to a reduction in the number of flights and destinations offered, as airlines may not find it profitable to operate flights to certain routes. This, in turn, could limit connectivity within the country.
  • It may also negatively impact the financial health of airlines, considering their operational costs and losses caused by the COVID-19 pandemic.
  • The government instead aims to ensure market-driven competition amongst airlines to keep airfares affordable, while also keeping in mind the interests of passengers.
  • Another measure being taken by the government is the implementation of a passenger-centric charter, which includes measures such as reimbursement for delays and cancellations, and more transparency in pricing.
Overall, the Indian government believes that a market-driven approach, coupled with passenger-friendly measures, would be more effective in ensuring affordable air travel in India.
Answered a year ago
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