Aviation Minister: No Blanket Airfare Caps; Deregulation Stays, Govt Acts in Crises

• Aviation Minister Ram Mohan Naidu stated there will be no blanket airfare caps, arguing that a deregulated market benefits India's aviation sector and consumers.
• The government believes airfares are best determined by demand and supply, with competition ultimately benefiting passengers.
• The Centre retains powers under the Aircraft Act to cap fares only during "extraordinary" crises, such as Covid-19 or major events.
• Examples of government intervention include Covid-19, Mahakumbh, Pahalgam–Srinagar, and recent IndiGo disruptions.
• Capacity augmentation is seen as the long-term solution to recurring price spikes and fare volatility.

Why It Matters: No general airfare caps means market dictates travel costs, govt intervenes only in crises.