The Indian government will remove the limits on ticket prices for domestic airlines. The restrictions were introduced to protect smaller air carriers from being charged more than their larger competitors.
The decision was confirmed by India’s Civil Aviation Minister Jyotiraditya Scindia on August 10, 2022. “The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel. Stabilization has set in, and we are certain that the sector is poised for growth in domestic traffic in the near future,” Scindia said in a tweet.
The decision was made following multiple requests from domestic Indian airlines which argued that limits on airfares interfere with their ability to adjust ticket prices depending on the current situation in the aviation market.
According to Outlook India, domestic carriers have complained about negative effects related to “high Aviation Turbine Fuel (ATF) prices and the depreciating Rupee, due to the ongoing Russia-Ukraine war”.
Air fare limits were imposed on airlines in May 2022 as a regulatory measure to help smaller Indian airlines cope with the global pandemic.
The order regarding fare caps is set to expire on August 31, 2022.