Chidambaram backs Centre’s move to cap economy airfares

Former Union Finance Minister and senior Congress leader P Chidambaram on Sunday welcomed the Centre’s decision to impose caps on economy-class airfares, saying that price limits are necessary to safeguard passengers in a market with limited competition.

The Congress leader, reacting to the government’s move, said the airline sector continues to function like a duopoly, and until there’s strong competition, fare caps are essential to protect the wider public interest.

He stressed that passengers must not be left vulnerable to steep and unpredictable airfares. The Centre on Saturday directed all airlines to strictly follow newly prescribed fare caps until the situation “fully stabilises”.

The Ministry of Civil Aviation said it had taken serious note of concerns over unusually high airfares charged by some carriers amid ongoing disruptions. To prevent opportunistic pricing, the ministry invoked its regulatory powers and issued a formal directive instructing all airlines to comply with the capped fares across affected routes.