Former Union Finance Minister and senior Congress leader P. Chidambaram on Sunday welcomed the Centre’s decision to impose caps on economy-class airfares, stating that fare limits are necessary to protect passengers in a market with restricted competition.
Commenting on the government’s move, Chidambaram noted that India’s aviation sector continues to operate “like a duopoly,” and until stronger competition emerges, regulatory intervention is crucial to safeguard public interest. He stressed that passengers should not be exposed to steep or unpredictable ticket prices, especially during periods of market disruption.
The Centre on Saturday directed all airlines to strictly adhere to newly prescribed fare caps until the aviation situation “fully stabilises.” The Ministry of Civil Aviation said it had taken serious note of complaints regarding unusually high airfares charged by certain carriers amid ongoing operational disruptions. To curb opportunistic pricing, the ministry invoked its regulatory powers and issued a formal directive mandating compliance with fare caps across affected routes.
The government’s decision aims to bring immediate relief to travellers while ensuring fair pricing practices in the sector.
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