Airfare caps on domestic flights get removed

The airfare caps on domestic flights have been removed with no lower or upper limit on ticket prices, upon analysis of the daily demand and air turbine fuel prices. This change came into effect on August 31, 2022. Air­lines now have the liberty to fix their airfare charges based on their policies for price capping and the demand on air routes. Removed after two years of deliberation, the mechanism had been implemented in the first place to stop airlines from charging excessive fares during the Covid-19 pandemic, and help the airlines that were facing financial losses. It had been applied on a rolling basis for a cycle of 15 days. With the current reform, the MoCA expects the aviation sector to stabilise while anticipating the growth of domestic traffic in the future.