Indian private airlines are being forced to fall into line with new government measures to restrain steep fare rises. Because domestic air fares rose sharply over the past two months, with last-day fares almost doubling, on supply constraints, airlines were deemed to be trying to maximise revenue in a competitive market. This prompted government action to curb increases and cap gains for airlines from higher spot fares.
INDIAN AIRLINES TO LOWER FARES IN LINE WITH COMMERCIAL CARRIERS
Indian private airlines are being forced to fall into line with new government measures to restrain steep fare rises. Because domestic air fares rose sharply over the past two months, with last-day fares almost doubling, on supply constraints, airlines were deemed to be trying to maximise revenue in a competitive market. This prompted government action to curb increases and cap gains for airlines from higher spot fares.