K Rammohan Naidu says government will not cap airfares
Flying home for the holidays?
The government just announced there won't be any official limits on airfares during the festive rush.
Instead of setting price caps, Civil Aviation Minister K Rammohan Naidu says airlines will simply be advised to keep fares reasonable, even as ticket prices are under pressure from rising fuel costs.
ATF accounts for 40-43% of airfares
With fuel prices up because of the West Asia crisis, airlines are facing higher expenses: ATF makes up 40 to 43% of airfares.
The government's plan is to stay in regular talks with airlines so fares don't get out of hand.
As Naidu put it, "We engage with the airlines continuously; we also have regular meetings with them. And we definitely point it to them that during this festive season, you have to ensure that the fair prices are kept at a reasonable level so that the people who want to travel, especially in these important times, get to see the benefit," and they're sticking with that approach to help keep flying affordable when demand spikes.