What are the government's policies on regulating airfares for the aviation industry

What measures has the Indian government taken to address the rise in airfares and how have they been received by the industry?
The Indian government has taken several measures to regulate airfares in the aviation industry.
  • The Directorate General of Civil Aviation (DGCA) has issued guidelines that mandate airlines to maintain transparency with regards to pricing and to provide a break-up of the fare charges for passengers.
  • The government has also introduced price bands, which means that airlines cannot charge more than a certain amount for a particular route and travel date. This ensures that airfares remain affordable for the common man.
  • The government has also capped fares for certain routes during the peak season, such as summer and winter holidays, to prevent exorbitant prices.
  • The UDAN (Ude Desh Ka Aam Nagrik) scheme, launched by the government, aims to increase air connectivity to remote and regional areas by capping fares at a maximum of INR 2,500 per hour of flight.
These measures have been received with mixed reactions from the industry. While some airlines have raised concerns about the impact on their revenue, others have welcomed these policies as a way to promote fair competition and ensure affordability for travelers. Overall, the government has taken steps to strike a balance between safeguarding consumer interests and ensuring the viability of the aviation industry.
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