By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Indian airlines ask government to remove fare cap
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Signin Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2025 | All Rights Reserved
Travel Radar - Aviation News > News > Indian airlines ask government to remove fare cap

Indian airlines ask government to remove fare cap

Josh McMinn
Last updated: 7 April 2022 10:23
By Josh McMinn
4 Min Read
Share
indian airline ticket prices
SHARE

Indian airlines such as IndiGo and Vistara are asking the government to remove the cap on airfares, as the price of jet fuel ramps up.

Summary
Why do airlines want the cap removed?Why was the fare cap introduced?When will a decision be made?

Why do airlines want the cap removed?

There are several reasons airlines are asking that the cap on ticket pricing be removed. Firstly, the price of jet fuel (ATF) has significantly increased this year, in part due to the crisis in Ukraine. The price is currently at Rs 1,12,924 a kilolitre, more than 33% higher than at the start of the year. Rising fuel prices have forced airlines worldwide to make difficult decisions on how to absorb the cost, with some choosing to raise airfares. But whilst the caps are in place, this option remains closed to Indian carriers. An airline official told Business Standard:

“Airlines price tickets depending on pricing history, which determines how much the customer and the market will bear. Pricing also differs depending on which group the passenger belongs to – leisure or business. The way each group is priced is very different. The limit placed by the government is hurting that ability.”

Airlines are also hoping that the removal of fare caps will help them recover from Covid losses. A spokesperson for IndiGo said:

“Owing to the constantly rising ATF costs, and recovery of the Indian Aviation sector, we believe that the Government can stimulate the aviation sector by completely doing away with fare caps. It will be helpful in expediting recovery from the pandemic’s severe effects while making air travel affordable for Indian travellers this summer season. These restrictions were implemented for a valid reason, but now would be a good time to relax them,”

Why was the fare cap introduced?

The fare cap was introduced during the pandemic and was meant to benefit both airlines and passengers alike. The measure was introduced alongside restrictions on flight capacity at the height of the lockdowns. Last October, the capacity restriction was dropped, but instead of removing the fare cap, the law was adjusted instead: now, the cap only applies to prices within 15 days of departure.

Indian airline spicejet
SpiceJet is one of the airlines hoping the cap will stay | © Statesman

The cap doesn’t just affect the maximum ticket prices however, it enforces a minimum limit as well. This helps companies with weaker balance sheets like SpiceJet and Go First, who could be outpriced by beefier airlines. These smaller airlines are hoping that the fare cap will hang around a little longer, whilst their businesses continue to recover from Covid losses.

When will a decision be made?

A meeting between the government and airline CEOs is likely to occur next week, Business Standard reports. A senior government official told the paper the final decision will be made by Jyotiraditya Scindia, India’s Minister of Civil Aviation. Since the law was originally introduced as a Covid measure, the real question remains not whether it will be repealed, but when. With Covid fatalities past their peak, and fuel prices rising, now might be as good a time as any.

Do you think the cap should be removed? Let us know your thoughts in the comments below!

You Might Also Like

SAS Strikes a Deal With Pilot Unions
Mandatory Home Quarantine For All Foreign Visitors in India
British Airways 747 Flap Problem
The UK Airport Trying to Keep Things Positive…and Local
American Airlines, British Airways and Oneworld 3-Test COVID-19 Trial
Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Josh McMinn
ByJosh McMinn
Follow:
Jr Reporter - Josh is an Jr. Aviation Reporter at Travel Radar covering the latest industry news, developments and passenger experiences. Outside of reporting, Josh is a talented artist and camera operator with experience spanning several industries.
Previous Article Emirates Airbus A380 Emirates returns to London Stansted
Next Article New Flight India and Cambodia Air India cancels Delhi-Moscow flights
Subscribe
Login
Notify of
guest

guest

0 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

A red car driving on a road with the Hollywood sign in the background
Hotels by the Hour in LA : redefining luxury and lifestyle in the heart of the city
Travel Travel Radar
Avelo aircraft N808VL at RDU airport
Avelo Airlines Launches New Membership Programme
Airlines Aviation Points & Loyalty
OX1 Plant © OXCCU
OXCCU Raises £20.75 million to develop Sustainable Aviation Fuel from Waste Carbon
Airline Economics Aviation Manufacturing Technology
A320neo-and-A321neo-in-flight-together
Airbus A320 Overtakes Boeing 737 as Most Popular Aircraft with Record Deliveries
Aircraft Aviation Manufacturing
British AIrways Boeing 787 Dreamliner in flight
British Airways to Boost Connectivity between India and the UK
Airline Economics Airlines Aviation Route Development
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • Latest News
  • Subscribe
  • Weekly Digest
  • Contact Us
  • Privacy Policy
  • About Us
  • Advertising
  • Media Coverage
  • Press & Events
  • Join Our Team
  • Our Brands

Signup to our Newsletter!

And get the latest aviation news via our weekly news digest!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
Welcome to the TR Community!

Sign in to your account

Not a member? Sign Up