Airlines accept 3-month fare cap, but wish govt didn't fix pricing

The industry is fears that despite the government saying that the cap and floor will be for three months, it may extend it arbitrarily

Airline executives were divided over the government capping air fare for the first time since its deregulation. While the broad opinion was that the fare floor fixed by the government was reasonable considering the current demand, they fear such interventions may become more prominent.

“The lower cap set by the government seems to be reasonable. In July, it’s a dream for any revenue management guy to be able to charge Rs 4,000 in the Delhi-Mumbai route,” said an executive of a 

low-cost airline.

Domestic flights will have a cap on fares with both an upper and lower limit for three months