Modi Govt to Soon Announce Mechanism To Cap Airfares

[New Delhi]Modi Govt to Soon Announce Policy to Cap Airfares
Airfares usually go up by around 40-50 per cent during the festive seasons and vacations. The airlines had faced severe criticism when the fares had even touched as high as Rs 50,000 for a one way ticket between Bengaluru and Delhi during the Chennai floods in December last year.
The fares had gone up significantly during the recent Jat agitation as well.
Central Government is now finally going to announce a mechanism soon to curb high airfares and unveil a new civil aviation policy to address all major issues affecting the sector.
The policy may be placed before the cabinet within two weeks.
As per Sources ,Prime Minister Narendra Modi is very keen to have an upper cap on the ticket price and government would announce the measures while taking views of the airlines also
Civil Aviation Minister For State Mahesh Sharma told Agency in an interview.
Aviation regulator DGCA had last week said that discussions need to be held with airlines before any decision on fixing upper cap on ticket prices.
On the civil aviation policy, which is hanging fire since for a long time, the Minister said majority of the issues were sorted out.
New Aviation Policy policy may address all the pending issues including the
5/20 norm,
regional connectivity scheme and the
ground handling issues.
Under 5/20 norm, a domestic airline cannot fly overseas unless it has completed five years of operation on local routes and has a fleet of 20 aircraft.