However, experts said strong competition among the airlines could lead to benefits for fliers and many airlines could offer discounts according to the requirements.
An industry source said airlines have the freedom to decide on airfare prices depending on prevailing market conditions. They may raise prices during the holiday season, as higher rates will increase margins, he said.
The ministry had imposed upper and lower limits on air tickets following the resumption of services in May 2020 following the first two-month nationwide lockdown to contain the spread of Covid-19. Thereafter, the limits were gradually relaxed in line with the improvement of air traffic in the country.
The lower limits were intended as a relief for airlines struggling after the Covid-19 pandemic. At the same time, the upper limits for airline tickets have been established to ensure that passengers do not have to pay a significant amount for air travel.
Previously, there were discussions about abolishing the tariff bands for domestic airline tickets between the stakeholders, including the government and airlines. Airlines were of the opinion that removing the tariff caps is necessary for a full recovery of domestic air traffic.
This multi-cap fund has survived some of the worst market cycles and still delivers the highest returns
Warren Buffett sells $47 million stake in Chinese EV company BYD