Despite seemingly endless fare wars in the Indian low cost carrier market, the government may put a maximum cap on ticket prices.
India’s civil aviation ministry held a meeting with airline executives to set up a mechanism to prevent high fares on some routes when demand outweighs supply.
"We know it is a free economy, but we have suggested to them that it is giving a bad name. The government will exercise all options to ensure fares are capped and is determined to do so. We will initially try to do that by mode of consensus," junior civil aviation minister Mahesh Sharma told the Times of India.
India is still one of the cheapest countries for air travel with a highly competitive market with all the major players seemingly intent on undercutting each other.
On some routes however fares remain high due to strong demand.
Civil Aviation Minister Ashok Gajapathi Raju urged airlines to ensure fares were not ‘unreasonably high’ and said more talks with carriers will take place later this month.
