Passengers might not be able to avail discounts while booking their flights in the near future. The aviation ministry restricted the airlines from deciding fares on their own as the civil aviation ministry capped airfares range-bound after domestic travel resumed in a phased manner on May 24. This capping on ticket prices impacted discounts and special fares that airlines roll out from time to time to attract passengers and generate instant cash too.
The Ministry of Civil Aviation (MoCA) had capped domestic fares from May 2020 and extended from October to December’20 and has further extended the same up to March 31, 20, 2021.
According to the report by brokerage Motilal Oswal Financial Services, the continuation of capping of airfares by the government in the long term may prove to be a huge dampener on the aviation industry as a whole, besides weakening sentiment for the regulated market.
The central government imposed a cap on airlines ticket prices at the time of resumption of domestic flight services in late-May initially for a period of three months.