fare capping are subject to the prevailing Covid-19 situation in the country, said VK, the minister of state for civil aviation, on Monday. "Decisions regarding the domestic scheduled operations and relaxation in fare capping is subject to prevailing Covid-19 situation, status of operations and passenger demand for air travel," Singh told Rajya Sabha in a written reply.
Fare bands are currently in force for airlines, while the capacity restriction on domestic flight operations was done away with from 18 October last year. “Under normal circumstances, airfares are neither established nor regulated by the government.
However, due to the unprecedented circumstances, fare bands with upper and lower limits were introduced by the government as a special measure," he said. "The fare bands serve the dual purpose of protecting the interests of the travellers as well as of the airlines," added Singh.
He said that during the past two years, the coronavirus pandemic has adversely affected the revenue streams of businesses, including the aviation sector.