Some domestic flight tickets may get expensive soon, as government mulls removal of airfare cap
- The Indian government is planning to remove caps on
airfareand capacity on domestic flights, says outgoing aviation secretary Pradeep Kharola.
- Last year in May, India had imposed a lower and upper cap of airfares based on the flight duration.
- The ministry had also introduced a cap on the capacity of domestic flights last year amid rising COVID-19 cases.
- This ensured that the COVID-19 safety norms like social distancing was complied with and air tickets were not out of budget for passengers.
India’s Ministry of Civil Aviation is looking to remove caps on airfare and capacity on domestic flights, but it may be like walking a “tightrope” as both industry interests and passenger safety have to be taken into consideration, outgoing aviation secretary Pradeep Kharola said in a media interaction.
View all Offers
View all Offers
- 24% OFF
OPPO A74 5G (Fluid Black,6GB RAM,128GB Storage) - 5G Android Smartphone | 5000 mAh Battery | 18W Fast Charge | 90Hz LCD Display₹ 15990₹ 20990Buy On
- 11% OFF
Samsung Galaxy Z Flip3 5G (Phantom Black, 8GB RAM, 256GB Storage) with No Cost EMI/Additional Exchange Offers₹ 84999₹ 95999Buy On
Redmi 9 (Sky Blue, 4GB RAM, 64GB Storage) | 2.3GHz Mediatek Helio G35 Octa core Processor₹ 8499₹ 10999Buy On
- 17% OFF
Samsung Galaxy M21 2021 Edition (Arctic Blue, 4GB RAM, 64GB Storage) | FHD+ sAMOLED | 6 Months Free Screen Replacement for Prime (SM-M215GLBDINS)₹ 11999₹ 14499Buy On
- 14% OFF
iQOO 7 5G (Storm Black, 8GB RAM, 128GB Storage) | 3GB Extended RAM | Upto 12 Months No Cost EMI | 6 Months Free Screen Replacement₹ 29990₹ 34990Buy On
The ministry had introduced a cap on the capacity of domestic flights last year amid rising COVID-19 cases. India also imposed a lower and upper cap of airfare based on the flight duration. This ensured that the COVID-19 safety norms like social distancing was complied with and the air tickets were not out of budget for passengers.
AdvertisementDomestic flights were allowed to operate from May 25 last year, after a two-month-long break during the COVID-19 lockdown. The carriers were allowed to operate not more than 33% of their pre-COVID domestic services. The capacity cap has gradually increased to 85% this month.
The ministry has also tweaked the price cap formula, allowing airlines to set fares for travel beyond fifteen days. Up till then, price caps were applicable on tickets up to 30 days from the booking date.
“Fare band, they do continue but in the last version we had made a significant change… The fare bands used to be applicable to 30 days from today, but now we have come down to 15 days. Gradually, if you go on decreasing this — from 14 days, 13 days, 12 days — a day would come where fare bands would not be applicable. The process has started, but it will be a gradual one, where the fare bands will be replaced to the normal system of operation,” he said.
The Indian government made those changes to allow airlines to operate more flights ahead of the festive season, starting from October 2021.
The Indian aviation industry has been pushing the Indian government and the ministry of civil aviation to do away with the caps for several months now. The industry believes that caps like these impact the competitiveness and only benefit the low-cost carriers.
OYO blames Zo Rooms for ‘forum hunting’ after Zostel’s latest plea to stop its IPO
AdvertisementIndiGo, SpiceJet, HDFC AMC, Future Group and other top stocks to watch out for on September 29
Aditya Birla Sun Life AMC IPO opens today, analysts bet high on the growing mutual fund industry
Popular on BI
- WhatsApp won’t work on these phones from November 1: Check the full list
- Shiba Inu hits another all-time-high — now more valuable than Adani Enterprises, Tata Steel and Tech Mahindra
- Shiba Inu is not only bigger than Dogecoin — it’s now bigger than XRP, Polkadot and USD Coin as the seventh-biggest player in the market
- IRCTC will lose a chunk of its revenue to the Indian government starting next month
- EaseMyTrip makes its first acquisition in 13 years to strengthen its hotel offerings
- Portugal''s political fate uncertain after govt budget defeat
- Battlegrounds Mobile India gets Dune-themed rewards in new crossover
- YouTube is the most-used social media platform by influencers in India: AnyTag report