Centre withdraws airfare caps imposed after IndiGo flight disruptions
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The Centre has withdrawn airfare caps, with effect from Monday, that were introduced in December to curb a spike in ticket prices after widespread flight cancellations by IndiGo, The Hindu reported.
The government had imposed distance-based price limits, going up to Rs 18,000 on the longest routes.
In an order issued on Saturday, the Ministry of Civil Aviation said that the fare caps were being withdrawn after a review found that “the prevailing situation has…stabilised, with restoration of capacity and normalisation of operations across the sector”.
The decision came at a time when airlines are facing higher costs due to the conflict in West Asia, which has pushed up aviation turbine fuel prices, and led to flight cancellations and longer and costlier re-routings.
The ministry, however, said airlines must ensure pricing discipline.
“Airlines shall ensure that fares remain reasonable, transparent and commensurate with market conditions, and that passenger interests are not adversely impacted,” The Hindu quoted the ministry as saying.
It added that regulatory action, including the reintroduction of fare caps, could be taken if there is an unjustified surge in ticket prices.
Indigo disruption
Between December 3 and December 5, IndiGo cancelled more than 2,500 flights and delayed over 1,850 others, affecting more than three lakh passengers. The disruption, which continued for several days, pushed fares to unusually high rates on several routes.
The disruption came amid the rollout of stricter...