What steps did the Indian Government take to address the issue of airfare capping
The Government of India recently ruled out capping airfares and took other steps to address the issue.
- The government has ruled out capping airfares, as it would adversely affect the airlines' operations and the consumers' interests. Instead, they have revised the lower and upper limits of the fares, which are based on the duration of flights to ensure a fair pricing policy.
- The upper cap has been increased by 30% from the earlier limit, while the lower cap has been reduced by 20% to benefit the passengers.
- The airlines have been allowed to operate up to 80% of their pre-COVID capacity, which has allowed them to cater to the rising demand and improve their financial health.
- The government has introduced a regional connectivity scheme called UDAN, which aims to enhance air connectivity to remote and underserved areas of the country at affordable prices.
- The government has also facilitated the setting up of more airports, which has improved accessibility and competition among airlines.
Answered
a year ago