Fare caps on domestic flights to be discontinued from August 31 – Times of India

NEW DELHI: The government-imposed minimum and maximum level of domestic airfares will be discontinued from August 31, 2022, and airlines will again be free to charge as per market forces of demand and supply.
Fare bands were introduced on May 25, 2020, as a part of the several conditions under which scheduled domestic flights were allowed to resume on May 25, 2020, after a two-month suspension Covid-time suspension. These bands, as of now, are effective for tickets purchased for travel within 15 days.

“After review of the current status of scheduled domestic operations viz-a-viz passenger demand for air travel, it has been decided to remove fare bands notified from time to time regarding the airfares with effect from August 31, 2022. Airlines/airport operators shall, however, ensure that the guidelines to contain the spread of Covid-19 are strictly adhered to and Covid-appropriate behaviour is strictly enforced by them during the travel,” the Union aviation ministry tweeted Wednesday.

Airlines had for the past few months been demanding an upward revision of the fare caps as jet fuel prices have almost tripled in the last two years.
Some struggling to survive financially weak airlines wanted fare caps to continue as they feared carriers that have cash reserves of their own or are backed by big conglomerates may unleash fare wars through predatory pricing. Such price wars could make the fight for survival even tougher for the weak players.