In a further sign that the government is in favour of opening up the economy more, the Ministry of Civil Aviation intends to increase the scale of domestic flights to 50 per cent of capacity.
Domestic flights resumed on May 25, but airlines are allowed to operate 33 per cent of capacity.
The ministry has sought suggestions from airlines on whether this is feasible.
However, industry sources said except market leader IndiGo and government-owned Air India, the rest gave weak demand as a deterrent.
They cited passenger worries, complicated by restrictions on the part of states, among the factors that would