Government Lifts Domestic Airfare Caps; Airlines Free to Set Prices

New Delhi: The Union government has withdrawn the upper and lower limits previously imposed on domestic air passenger ticket prices. This important decision by the Ministry of Civil Aviation comes after three months of strict restrictions.

With this change, airlines will be able to set ticket prices according to market demand. The government had imposed fare controls to protect passengers from excessive charges in light of the extraordinary situation following the Iran-Israel war.

However, the decision to lift the restrictions was made considering the current changes in aviation fuel prices and the competitive situation in the market, Civil Aviation Minister Ram Mohan Naidu said. Airlines are likely to increase fares sharply during holiday or festive seasons.

The ministry stated that the move is necessary to ensure the financial stability of airlines and to promote healthy competition. Companies such as Air India, IndiGo, and Akasa Air have welcomed the government's decision. However, there are concerns that the sudden increase in fares may negatively affect ordinary passengers.