Continuation of air fare capping may prove to be dampener on aviation sector in long term: Report

Mumbai: The continuation of capping of air fares by the government in the long term may prove to be a huge dampener on the aviation industry as a whole, besides weakening sentiment for the regulated market, a report said on Tuesday.

The central government imposed a ceiling on airlines ticket prices at the time of resumption of domestic flight services in late-May initially for a period of three months. However, since then, it has already extended the period thrice with the latest one to March 31 or until further notice.