India Tightens Airfare Regulation in Response to Price Spikes During Kumbh Mela.

The Civil Aviation Ministry of India is all set to tighten oversight of airfares because of intense public outcry against salary hikes for the Maha Kumbh Mela. This means that the Tariff Monitoring Unit will observe fare hikes during major events, like the Kumbh Mela, and report the details to the regulator, ensuring that an unreasonable increase in price does not happen during the prayers at Prayagraj, the site of the religious gathering. The DGCA is already in the dock; tickets have become 30-50% cheaper, with an increase in flights. The airlines are adding capacity, with IndiGo planning around 900 flights for the Maha Kumbh period. The government is trying to balance the affordability for the pilgrims with the viability of the airlines.

 

Source: Bloomberg, Business Standard.