What measures has the Indian Government taken to regulate airfares in India

India's Government has ruled out capping airfares. What measures has the government taken to regulate airfares in India?
The Indian government has implemented several measures to regulate airfares in India. Here are some of them:
  • The government has introduced the UDAN (Ude Desh ka Aam Naagrik) scheme to enhance regional connectivity and affordability. Under this scheme, airlines have to sell at least half of their seats at the government-set price caps.
  • The government monitors airfare prices through its portal – 'AirSewa.' Passengers can use the portal to file complaints against airlines for unjustified fare hikes.
  • The government has rationalized taxes on airlines and aircraft fuelling, resulting in reduced operational costs for airlines.
  • The government has also permitted foreign airlines to participate in the UDAN scheme and operate flights to and from regional airports in India. This has increased competition and led to a reduction in airfares.
  • The government has allowed airlines to set their own fares for non-regulated routes, thus promoting competition among them.
These measures have ensured that airfares in India remain affordable for passengers while ensuring the sustainability of the airline industry.
Answered a year ago
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