Business Standard

Saturday, December 21, 2024 | 08:14 PM ISTEN Hindi

Notification Icon
userprofile IconSearch

Lockdown 4.0: Will airfare caps benefit airlines and protect consumers?

Those who defend the caps say controlling fares is important because weaker airlines with hardly any cash reserves might be forced to close down

flights
Premium

The airlines say the number should have been determined by the demand and supply scenario of a flight rather than mandated

Surajeet Das Gupta New Delhi
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

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in