Indian aviation market’s recovery significantly impacted by cap on fares, capacity, says IATA DG

The Indian aviation market’s recovery has been significantly impacted by caps on fare and capacity that has been placed by the government since May last year, said Willie Walsh, the director general of global airlines body IATA, on Tuesday.

When India resumed the scheduled domestic flights on May 25 last year after a two-month break in view of Covid-19 lockdown, it had allowed the carriers to operate not more than 33 per cent of their pre-Covid domestic services. This capacity cap has been gradually increased and it now stands at 65 per cent.