Every common traveler has been troubled at one time or the other by the sudden skyrocketing of air fares during festivals, school holidays or any emergency (like a natural disaster). To overcome this problem and to stop the arbitrariness of airlines, the government is now going to take a very strict and historic step. The Ministry of Civil Aviation is working on a new regulatory framework, under which the unexpected increase in air fares (Dynamic Pricing Cap) during festival and holiday seasons will be completely banned. Why was this strong intervention of the government necessary? Currently, airlines work on ‘Dynamic Pricing’ algorithm. Its simple rule is – ‘As the demand increases, the fare will also increase.’ Loot on festivals: During Diwali, Chhath, Eid, Christmas or summer holidays, when lakhs of people book tickets to go home, the fares on some routes become costlier by 300% to 400% of the normal. Lack of transparency: Sometimes the fare of a 2-hour domestic flight becomes more expensive than an international flight. After continuously increasing complaints of common consumers and suggestions of parliamentary committees, the government has decided to put a legal check on this ‘fair gauging’ (arbitrary recovery). How will the government’s new ‘airfare capping’ formula be? According to sources, the government is planning to set an ‘Upper Cap’ i.e. maximum fare limit to protect the interests of passengers without directly interfering in the business of airlines: Seasonal Fair Index: A maximum ceiling price for each route will be fixed in advance for the festival months. Even if airlines want to, they will not be able to increase the ticket price by even ₹ 1 above that fixed limit. Special protection for economy class: This rule will mainly apply to economy class seats, so that middle class and working passengers can get direct relief. No-profit zone in emergency situations: If there is a natural disaster (flood, earthquake) or any crisis occurs in any part of the country, then the fares for flights there will be immediately locked at the normal base price. Budget planning will be easy like a mutual fund. Just as your budget never gets spoiled through a disciplined SIP in a mutual fund, similarly after the introduction of this rule, it will become very easy for common citizens to plan to go to their home town. Passengers will no longer be forced to book tickets 6 months in advance due to the fear that the fare will go up to ₹25,000 at the last moment. Aviation experts believe that although this rule may have a slight impact on the profit margins of airlines in the short-term, in the long-term it will lead to a huge increase in the number of air passengers (passenger traffic), which will ultimately benefit the aviation sector. It is expected that this new regulation will be fully implemented across the country from the upcoming festive season.