Airfares to get expensive from today? In May 2020, the government had imposed lower and upper limits on domestic airfares, according to which airlines can’t charge a passenger less than Rs 2,900 (excluding GST) and more than Rs 8,800 for domestic flights lasting under 40 minutes
Read More : UK Launches Priority, Super Priority Visas For Indian Students. Check List of Required Documents.
New Delhi: With effect from August 31, the aviation ministry will remove the cap on domestic airfare prices after a hiatus of more than 2 years. This move will allow airlines to set their own fares. “After review of the current status of Scheduled Domestic Operations viz-a-viz passenger demand for air travel, it has been decided to remove the fare bands notified from time to time regarding the airfares with effect from 31.08.2022,” the Ministry of Civil Aviation had stated in a notification.
WHAT TYPE OF PRICE LIMITS WERE THERE?
For the unversed, the government in May 2020 imposed lower and upper limits on domestic airfares, according to which airlines can’t charge a passenger less than Rs 2,900 (excluding GST) and more than Rs 8,800 for domestic flights lasting under 40 minutes. The limits were set to protect economically weaker carriers as well as passengers from being swindled by ravenous airlines.
Read More : Liquor Purchase In Delhi To Be Under Old Excise Policy From September 1, Private Vends Closing, 21 Dry Days
WHY IS GOVT LIFTING PRICE CAPS?
“The decision has been taken after careful analysis of daily demand and prices of air turbine fuel. Stabilisation has set in and the sector is poised for growth,” said Aviation Minister Jyotiraditya Scindia.
WHAT CHANGES FOR FLYERS FROM TODAY?
With this change, airlines are free to set their own fares. However, there are chances that airlines may lower the cost of flight tickets to bring in more passengers. Earlier this month, Jet fuel (ATF) prices were cut by the steepest ever 12 per cent, the second reduction in as many weeks, on softening international oil prices amid recessionary fears. Aviation turbine fuel (ATF) prices were cut by Rs 16,232.36 per kilolitre, or 11.75 per cent, to Rs 121,915.57 per kl in the national capital.
This was the steepest ever reduction in rates and follows a Rs 3,084.94 per kl (2.2 per cent) reduction effected on July 16.
