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The Delhi High Court refused to impose nationwide fare caps on airlines, citing the industry's competitiveness and significant losses. The court emphasized market forces should set ticket prices and cautioned against over-regulation

Delhi High Court refuses to cap airfares; says auto-rickshaw fares sometimes higher than airfares

<h2>The Delhi High Court refused to impose nationwide fare caps on airlines, citing the industry's competitiveness and significant losses. The court emphasized market forces should set ticket prices and cautioned against over-regulation</h2>

The Delhi High Court on Wednesday refused to cap airline fares. The court observed that the airline industry is "very very competitive" and currently operating at "huge losses,". The bench, comprising Acting Chief Justice Manmohan and Justice Manmeet PS Arora, emphasized that market forces should determine ticket prices.&nbsp;
<h3>No cap on airfare</h3>
"The industry is highly competitive and doing well today. An auto rickshaw fare is more than an airline fare," noted the bench, which plans to issue a detailed order on the matter. The court highlighted the significant investments in the sector and cautioned against over-regulation.&nbsp;
"It is a well-controlled sector. Every industry that is performing well should not be tampered with," the bench stated, adding that isolated incidents do not justify public interest litigations (PIL) leading to new regulations for the entire sector.&nbsp;
Two PILs, filed by advocate Amit Sahni and consumer rights activist Bejon Misra, represented by lawyer Shashank Deo Sudhi, sought to regulate flight ticket pricing to prevent airlines from "fleecing arbitrarily" customers.&nbsp;
The Directorate General of Civil Aviation (DGCA) opposed the plea, arguing that airfares depend on various factors, including routes and aircraft availability. They noted that flights often operate with very few passengers, impacting fare structures.
Ultimately, the court decided not to intervene, stressing that the competitive nature of the airline industry and its current financial struggles necessitate reliance on market dynamics rather than regulatory caps. The bench concluded that the industry does not require additional regulation, given its current performance and investment inflows.
Also watch: <a href="https://www.editorji.com/business-news/indian-airlines-share-to-surge-to-50-in-international-passenger-traffic-by-fy28-crisil-1714996254319">Indian airlines share to surge to 50% in international passenger traffic by FY28: CRISIL</a>

Domestic air travel is set to become costlier as the Civil Aviation Ministry has raised the lower as well as upper caps on fares by 9 to 12 percent.
The government had imposed lower and upper limits on airfares based on flight duration when services were resumed on May 25, 2020, after a two-month lockdown due to coronavirus.
The lower caps were imposed to help the airlines that have been struggling financially due to coronavirus-related travel restrictions. The upper caps were imposed so that passengers are not charged huge amounts when the demand for seats is high.
In an order on Thursday, the ministry increased the lower limit for flights under 40 minutes of duration from Rs 2,600 to Rs 2,900 -- an increase of 11.5 percent. The upper cap for flights under 40 minutes of duration was increased by 12.8 percent to Rs 8,800.
Similarly, flights with duration between 40-60 minutes have a lower limit of Rs 3,700 instead of Rs 3,300 now. The upper cap on these flights was increased by 12 percent to Rs 11,000 on Thursday.
The flights with duration between 60-90 minutes have a lower limit of Rs 4,500 -- an increase of 12.5 percent. The upper cap on these flights was increased by 12.82 percent to Rs 13,200 on Thursday.
Now, domestic flights of duration between 90-120, 120-150, 150-180 and 180-210 minutes have lower caps of Rs Rs 5,300, Rs 6,700, Rs 8,300 and Rs 9,800, respectively, as per the ministry's order.
Till date, domestic flights of duration between 90-120, 120-150, 150-180 and 180-210 minutes had the lower limits of Rs 4,700, Rs 6,100, Rs 7,400 and Rs 8,700, respectively.
The lower cap on flights between 120-150 minutes duration was increased by 9.83 percent to Rs 6,700, as per the new order.
On Thursday, the upper caps on domestic flights of duration between 90-120, 120-150, 150-180 and 180-210 minutes were increased by 12.3 percent, 12.42 percent, 12.74 percent and 12.39 percent, respectively, as per the order.
The caps mentioned by the government in its order does not include the passenger security fee, user development fee for the airports and the GST. These charges are added on top when the ticket is being booked by the passenger.

Air travel becomes costlier as govt raises caps on domestic fares. See changes

Domestic air travel is set to become costlier as the Civil Aviation Ministry has raised the lower as well as upper caps on fares by 9 to 12 percent. See changes here

Air travel becomes costlier as govt raises caps on domestic fares

Domestic air travel is set to become costlier as the Civil Aviation Ministry has raised the lower as well as upper caps on fares by 9 to 12 percent.
The government had imposed lower and upper limits on airfares based on flight duration when services were resumed on May 25, 2020, after a two-month lockdown due to coronavirus.
The lower caps were imposed to help the airlines that have been struggling financially due to coronavirus-related travel restrictions. The upper caps were imposed so that passengers are not charged huge amounts when the demand for seats is high.
((GFX)) In an order on Thursday, the ministry increased the lower limit for flights under 40 minutes of duration from Rs 2,600 to Rs 2,900 -- an increase of 11.5 percent. The upper cap for flights under 40 minutes of duration was increased by 12.8 percent to Rs 8,800.
Similarly, flights with duration between 40-60 minutes have a lower limit of Rs 3,700 instead of Rs 3,300 now. The upper cap on these flights has been increased by 12 percent to Rs 11,000.
The flights with duration between 60-90 minutes have a lower limit of Rs 4,500 -- an increase of 12.5 percent. The upper cap on these flights was increased by 12.82 percent to Rs 13,200 on Thursday.
The caps for longer duration flights have also gone up.&nbsp;

Domestic air travel is set to become costlier as the Civil Aviation Ministry has raised the lower as well as upper caps on fares by 9 to 12 percent.

Domestic air travel is set to become costlier as the Civil Aviation Ministry has raised the lower as well as upper caps on fares by 9 to 12 percent.
The government had imposed lower and upper limits on airfares based on flight duration when services were resumed on May 25, 2020, after a two-month lockdown due to coronavirus.
The lower caps were imposed to help the airlines that have been struggling financially due to coronavirus-related travel restrictions. The upper caps were imposed so that passengers are not charged huge amounts when the demand for seats is high.
Also See |&nbsp;<a href="https://www.editorji.com/story/8-000-000-000-pandemic-hit-for-airlines-1622788031356" target="_blank">$8,000,000,000 pandemic hit for airlines</a>
In an order on Thursday, the ministry increased the lower limit for flights under 40 minutes of duration from Rs 2,600 to Rs 2,900 -- an increase of 11.5 percent. The upper cap for flights under 40 minutes of duration was increased by 12.8 percent to Rs 8,800.
Similarly, flights with duration between 40-60 minutes have a lower limit of Rs 3,700 instead of Rs 3,300 now. The upper cap on these flights was increased by 12 percent to Rs 11,000 on Thursday.
The flights with duration between 60-90 minutes have a lower limit of Rs 4,500 -- an increase of 12.5 percent. The upper cap on these flights was increased by 12.82 percent to Rs 13,200 on Thursday.
Now, domestic flights of duration between 90-120, 120-150, 150-180 and 180-210 minutes have lower caps of Rs Rs 5,300, Rs 6,700, Rs 8,300 and Rs 9,800, respectively, as per the ministry's order.
Till date, domestic flights of duration between 90-120, 120-150, 150-180 and 180-210 minutes had the lower limits of Rs 4,700, Rs 6,100, Rs 7,400 and Rs 8,700, respectively.
The lower cap on flights between 120-150 minutes duration was increased by 9.83 percent to Rs 6,700, as per the new order.
On Thursday, the upper caps on domestic flights of duration between 90-120, 120-150, 150-180 and 180-210 minutes were increased by 12.3 percent, 12.42 percent, 12.74 percent and 12.39 percent, respectively, as per the order.
The caps mentioned by the government in its order does not include the passenger security fee, user development fee for the airports and the GST. These charges are added on top when the ticket is being booked by the passenger.

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