CAP ON AIR FARES IS HURTING AIR TRAVEL: CAPA

MUMBAI: The government’s decision to temporarily fix a cap on air fares following the resumption of domestic flight services in a graded manner is impacting air travel demand as airlines are unable to offer tickets at lower prices to customers, observed aviation think tank Centre for Asia Pacific Aviation (CAPA). CAPA, a consultancy and advisory firm specialising in aviation sector, said adopting such a mechanism takes away an airline’s flexibility to charge fares at a lower rate when demand is on the lower side.