Airfare Caps To Be Removed: The ccis going to remove the Airfare Caps imposed during the Covid Pandemic after 27 months. After this decision of the government, the airfare may be cheaper , because airlines will be able to fix the price of tickets without any restriction. The government is going to remove both the upper and lower limits of airfares from August 31. The Union Civil Aviation Ministry gave this information on Wednesday.
Civil Aviation Minister Jyotiraditya Scindia tweeted , ‘The decision to remove the airfare limit has been taken after careful analysis of daily demand and Aircraft Fuel (ATF) prices. Stability is starting to come and we are confident that the region is poised for increased domestic traffic in the near future.
Decision will be effective from August 31
The Civil Aviation Ministry said in an order on Wednesday that after reviewing the current status of domestic operations, it has been decided to do away with the fare cap with effect from August 31, 2022. ATF prices have come down over the past few weeks after reaching record levels due to the Russo-Ukraine war. The ATF price in Delhi was Rs 1.21 lakh per kiloliter on August 1, which is about 14 per cent lower than the previous month.
The upper-lower limit of the fare was fixed in May 2020
After the resumption of air services on May 25, 2020, after a two-month lockdown due to the COVID-19 pandemic, the ministry had imposed lower and upper limits on domestic airfares depending on the duration of the flight. Under this, airlines cannot charge a passenger a fare not less than Rs 2,900 (excluding GST) and more than Rs 8,800 (excluding GST) for domestic flights of less than 40 minutes.
At the same time, a senior DGCA official said that all airlines have been informed about this decision on Wednesday. Earlier, there were discussions between government officials and stakeholders including airlines regarding domestic airfares. The airlines, while expressing their views, said that it is necessary to remove the pricing cap for the recovery of domestic air traffic.
Airline companies can give discount in tickets
After the decision to remove the air fare cap, airlines can give discounts in tickets. Before the introduction of air fare cap, airlines used to offer discounts on short and long distance tickets for customers from time to time. It was closed after the air fare cap was installed. Passengers can benefit from this decision of the government.
