Cap on domestic airfare extended till 31 March, but with rules tweaked

Airlines will need to sell 20% seats below midpoint of the fare band on each flight instead of 40% as mandated earlier

India has extended the cap on domestic airfares till March 31. 

However, government has made a little tweak to the rules. Airlines will need to sell 20 per cent seats below midpoint of the fare band on each flight instead of 40 per cent as mandated earlier.

Many airlines have opposed the system of government regulating air fare, saying that it impacts their flexibility of offering ticket prices in order to increase passenger occupancy when already air travel is under pressure.

 

In the wake of coronavirus