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With air fares shooting up in the wake of SpiceJet operations getting disrupted, civil aviation minister Ashok Gajapathi Raju has asked officials to devise a mechanism to regulate fares.
According to this, the highest economy-class fare to any destination will be capped at Rs 20,000. The minimum fare will depend on the break-even cost of each airline. There will be no cap on business-class fares. The mechanism to regulate fares is likely to be devised in about a month's time.
Civil aviation secretary V Somasundaran will hold consultations with stakeholders before the implementation of the scheme. Sources say most airlines are okay with a cap on minimum fares.
According to this, the highest economy-class fare to any destination will be capped at Rs 20,000. The minimum fare will depend on the break-even cost of each airline. There will be no cap on business-class fares. The mechanism to regulate fares is likely to be devised in about a month's time.
Civil aviation secretary V Somasundaran will hold consultations with stakeholders before the implementation of the scheme. Sources say most airlines are okay with a cap on minimum fares.
