India s government had enforced limits on airfares during the pandemic lockdowns to prevent a price war in the aviation industry. The controls were put in place due to the market s inability to set fares at the time. However, the caps were withdrawn less than a year ago as domestic and international travel resumed. The reintroduction of airfare caps would hurt the sector as the market currently has the capacity to price in capacity shortages.
HANOI, March 28 (Xinhua) Vietnam will raise the fare caps on domestic airlines that have remained unchanged since 2015 by an average 3.75 percent in the seco
After the removal of airfare caps, there seems to be a mixed trend with lower ticket prices for routes having relatively lesser passenger loads, according to travel industry experts.
This cap removal would mean that from August 31, the fares will be regulated by the market, where airline operators are expected to offer competitive prices.
Civil aviation minister Jyotiraditya Scindia said the decision to remove airfare caps was taken after careful analysis of daily demand and prices of jet fuel