Capacity, fare regulations slowing India's aviation sector recovery: IATA

Notably, the centre's regulations have been justified as to protect the domestic aviation sector from economic turmoil unleashed by Covid-19. However, IATA's Director General Willie Walsh during a media interaction said that the regulations are distorting the market rather than supporting growth of the market.

Centres regulations on capacity utilisation as well as fare caps on domestic aviation sector is slowing down the industrys recovery, global airlines' association IATA said on Tuesday.

Notably, the centre's regulations have been justified as to protect the domestic aviation sector from economic turmoil unleashed by Covid-19.

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However, IATA's Director General Willie Walsh during a media interaction said that the regulations are distorting the market rather than supporting growth of the market.

According to Walsh, India's aviation market will recover much faster, if these regulations are removed.

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Previous data points showed that India's domestic air passenger volume -- measured in revenue passenger kilometres (RPKs) -- growth plunged by 42 per cent in April when compared to the levels in the like period of 2019.

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The country's domestic available passenger capacity -- measured in available seat kilometres (ASKs) -- was down by over 15 per cent.

Besides, IATA predicted that India's aviation market will recover to the 2019 levels by 2024.

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Furthermore, he called for the easing of international travel restrictions on fully vaccinated passengers.

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IATA has proposed a comprehensive system should be set in place that allows hassle-free travel for those inoculated.

Moreover, the system should also ensure testing and verification of those passengers who have not been inoculated but without increasing the already set restrictions.

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