Indian aviation mkt’s recovery impacted by cap on fares, capacity: IATA DG

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

When India resumed scheduled domestic flights on May 25 last year after a two-month break in view of the COVID-19 lockdown, it had allowed 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.

At a press conference, Walsh said, “Without question, the demand in India is way in excess to the capacity that is in the market at the moment…