The Directorate General of Civil Aviation (DGCA) has decided to remove the ongoing fare caps on domestic airlines from August 31.

“After review of the current status of scheduled domestic operations viz-a-viz passenger demand for air travel in terms of the purpose specified in the initial order no. 02/2020 dated 21.05.2020, it has been decided to remove the fare bands notified from time to time regarding airfares with effect from 31.08.2022,” the DGCA said in a notification.

The government in June had started discussions with airlines about the removal of price bands for passenger fares.

An IndiGo spokesperson said, “We are strongly supportive of this move as free market economics is good for customers and investors.”

“We would like to welcome the announcement by the Ministry of Civil Aviation on removal of the lower and upper limit on airfares. We look forward to the response of the removal of fare caps as this will rationalise the demand and supply,” said Bharatt Malik, Sr VP, Flights, Yatra.com.

Malik added, “The fares will now be regulated by the market and consumers will be presented with competitive prices, hence normalising it for them. We hope this announcement will help the industry gain momentum in terms of growth and scalability.”

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