Will the cap on minimum as well as the maximum air fare really benefit airlines as well as protect consumers? Many airlines as well as aviation analysts say that it won’t and the government might have to relook at these restrictions much before the stipulated three-month period.
Those who defend the caps say controlling fares is important because weaker airlines with hardly any cash reserves might be forced to close down. A large airline could sell fares at below cost or at marginal cost and kill an airline that does not have the cash reserves to do the same. After