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Aviation ministry caps airfares, one third flights to be permitted on May 25

Aviation ministry caps airfares, one-third flights to be permitted on May 25

Aviation ministry caps airfares, one-third flights to be permitted on May 25
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By Anu Sharma  May 21, 2020 1:03:22 PM IST (Updated)

The Civil Aviation Ministry has capped airfares in order to prevent any massive jump or drop in airfares as flights resume amid COVID-19 after a ban spanning two months.

The Civil Aviation Ministry has capped airfares in order to prevent any massive jump or drop in airfares as flights resume amid COVID-19 after a ban spanning two months.

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"Airlines should adhere to the lower and upper limits offers prescribed by the Ministry during the period of COVID- 19 pandemic," the civil aviation ministry said in its order dated May 21.
It is important to note that the central government has the power to regulate airfares. As per the Aircraft Act, 1934, the central government can conduct economic regulation of civil aviation and air transport services, including approval, disapproval, regulation of the tariff of operators of air transport services.
The details of how the airfares will be capped by the government are likely to be announced soon.
The government also said today that around one-third of total flights will be permitted on May 25 and the operations will be increased in a calibrated manner. Elderly, pregnant women, passengers with health issues have been advised to avoid travel.
Only those with web check-in will be able to enter the airport. There will be no meals onboard and cabin crew will need to be in full protective gear.
"CAPA India strongly opposes the imposition of price floors or caps in a free market. A minimum fare will not be in the interests of passengers, many of whom have already been impacted as a result of not receiving refunds for flights cancelled during the lockdown," CAPA India had said on May 19.
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