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There will be no cap on air ticket prices from August 31, and airlines will have flexibility in fixing the airfares. However, experts said that high competition among the airlines may lead to benefits for fliers and many airlines may offer discounts as per the demands. Aviation expert <keyword id="8783" type="General" weightage="80" keywordseo="harshvardhan" source="Orion">Harshvardhan</keyword> said: "The move will give flexibility to the airlines in deciding air fares and airlines can charge as per their policies. Airfare cap was more towards the higher side. New airline has come and there is competition in the sector. To attract travelers, some airlines are likely to come up with offers." An industry source said that airlines will have freedom to decide on air ticket prices, according to the prevailing market situations. They may raise prices during festive season as higher fares will add to the margins, he said. Earlier, the <keyword id="58151" type="General" weightage="80" keywordseo="civil-aviation-ministry" source="Orion">Civil Aviation Ministry</keyword> had said that after review of the current status of <keyword id="14865698" type="General" weightage="80" keywordseo="scheduled-domestic-operations" source="Orion">Scheduled Domestic Operations</keyword> vis-a-vis 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 August 31. The ministry had imposed lower and upper limits on airfares after the resumption of services in May 2020 following the initial two-month nationwide lockdown to contain the spread of Covid-19. Thereafter, the limits were relaxed in a phased manner according to the improvement in air traffic in the country. The lower caps were meant as a relief for airlines struggling after the Covid-19 pandemic. At the same time, the upper caps on airfares were fixed to ensure that passengers do not have to pay a hefty amount for air travel. Earlier, discussions on removing the fare bands for domestic airfares were held among the stakeholders including the government authorities and airlines. Carriers were of the view that removal of the pricing caps is required for the full-fledged recovery of domestic air traffic. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/this-multi-cap-fund-has-survived-the-worst-market-cycles-and-yet-delivered-the-highest-returns/articleshow/93914048.cms">This multi-cap fund has survived the worst market cycles and yet delivered the highest returns</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/warren-buffett-sells-47-mn-worth-stake-in-chinese-ev-firm-byd/articleshow/93902458.cms">Warren Buffett sells $47 mn worth stake in Chinese EV firm BYD</a>

Airfares may get costlier this festive season as there's no cap ticket prices from now

<ul><li>The aviation sector is batting for tax sops to help reduce their high cost and debt burden, according to ICRA.</li><li>According to the latest data from the DGCA, domestic airlines across the country carried 55.6 million passengers from January to November 2020, nearly 58% lower from what they carried in the same period last year.</li><li><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider.</a></li></ul>The never-seen-before coronavirus pandemic has cast a shadow on the aviation sector. The industry suffered a major cash crunch after thousands of flights daily came to a grinding halt in April. Coming out of the very difficult times, the sector is hoping for incentives and support from Finance Minister Nirmala Sitharaman in the upcoming <keyword id="8420431" type="UNKNOWN" weightage="20" keywordseo="budget-2021">Budget 2021</keyword> on February 1. From lowering air turbine fuel taxes (ATF) to fiscal stimulus and reducing airport, parking, landing, navigation charges — the experts have prepared a long list of tasks. <div type="Article" hostid="261" msid="80400869" title="Do not panic when Finance Minister Nirmala Sitharaman reads out the revised estimates" mstype="2" mssubtype="0"></div> According to the latest data from the Directorate General of Civil Aviation (DGCA), domestic airlines across the country carried 55.6 million passengers from January to November 2020, nearly 58% lower from what it carried in the same period last year — all thanks to the stigma around air travel. <div type="image" title="domestic air traffic (1)" msid="80562904" hostid="261"></div> Here’s what the experts are demanding for: Rationalisation of various taxes According to Kinjal Shah, vice president, ICRA, the aviation industry's deteriorating financial health has raised tax sops' expectations to help reduce their high cost and debt burden, especially lowering taxes on ATF. The ATF comprises nearly 30-40% of the total cost of an airline, and the prices in India are 45-50% higher, compared to international standard prices, she added. Though, ahead of the budget, the government has also hinted that it is planning on the same lines. Addressing a <a href="https://www.businessinsider.in/budget/news/various-taxes-may-rationalize-in-aviation-sector-in-budget-2021/articleshow/80186028.cms">webinar </a>on "Connecting the Dots-Recovery of aviation, tourism and hospitality", Usha Padhee, Joint Secretary, Ministry of Civil Aviation said, "we are working on a long-term plan to help the sector by rationalising various taxes. We are looking forward to making the ecosystem smarter and more efficient to make the aviation sector sustainable." "The policy rejig will also help the sector in the long run, if it is hit by a similar crisis in the future," she added. While this may incentivise and reduce the cost for the airlines over the long term, the sector still needs travellers to return to the airports. Regaining travelers trust is most important for revival The experts have also sought improvement in tourism experience and support related infrastructure along with other reforms to bring the travellers back to flying. Arvind Sharma, Partner, Shardul Amarchand Mangaldas &amp; Co said, "Development of iconic tourist destinations will aid in the development of the aviation sector. And, Prioritising, affordable and safe air travel will boost air travel demand significantly." Even the Confederation of Indian Industry (CII) has recommended that the tourism industry be brought under the 'concurrent list' by amending Schedule VII of the Constitution, thus helping both the Centre and states develop a comprehensive approach that is driven by unique needs of each state. <div type="Article" hostid="261" msid="80492345" title="Railways Budget 2021: Faster trains, higher funding and support for green railways — here’s what’s on the experts’ checklist" mstype="2" mssubtype="0"></div> Reduction in other levies The airport, parking, landing and navigation charges constitute a separate cost for the sector and the industry experts have asked for a reduction in the excessive levies along with other sops. "In the short term, the industry requires financial aid and reduction in levies and taxes to revive operations and increase passenger traffic, and in the long term, the aviation infrastructure requirements should be addressed," said Sharma. The CII in its pre-Budget memorandum <a href="https://timesofindia.indiatimes.com/business/india-business/budget-2021-aviation-expectations-baggage-allowance-duty-free-shop-union-budget-2021/articleshow/80213536.cms?">mentioned </a>that the government should include the aircraft components (such as computers, hardware, plastic, paints and tyres) under aircraft parts to avoid any disputes. These parts are currently assessed as per the CTH (Change of Tariff Heading) and charged at different rates. Remove cap on fare prices The government introduced a fare price band capping the air travel ticket prices for airlines to a minimum, in order to avoid exploitation by airlines. However, ICRA now believes that it is time for the government to remove the price band and let the airlines decide the ticket prices. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Flight time </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Current price cap </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">40-60 minutes </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,500- ₹7,500; </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">60-90 minutes </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,000- ₹9,000 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">90-120 minutes </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,500- ₹10,000 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">120-150 minutes </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,500- ₹13,000 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">150-180 minutes </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5,500- ₹15,700 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">180-210 minutes </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹6,500- ₹18,600 </td></tr></tbody></table> "Since the airlines have to currently follow a fare band as per the directives of the Ministry of Civil Aviation (MoCA), which is constraining their ability to charge higher fares, they want relaxations in terms of the fares they can charge," said Shah. According to the agency estimates, the Indian aviation industry is likely to report a significant net loss of $2 billion in FY2021 against a $1 billion net loss in FY2020. SEE ALSO: <a href="https://www.businessinsider.in/budget/news/prime-minister-narendra-modi-signals-big-defence-budget-allocation-for-make-in-india/articleshow/80511082.cms" data-type="tilCustomLink">India’s Prime Minister Narendra Modi may just have signalled a big allocation for defence equipment manufacturing, 3 days before the budget</a> <a href="https://www.businessinsider.in/business/startups/news/priyanka-chopra-jonas-makes-another-tech-investment-this-time-in-us-based-rental-marketplace-apartment-list/articleshow/80554158.cms" data-type="tilCustomLink">Priyanka Chopra Jonas makes another tech investment – this time in US-based rental marketplace Apartment List</a>

Airlines want budget 2021 to lower jet fuel price and parking charges

The <keyword id="58151" type="ORGANIZATION" weightage="20" keywordseo="civil-aviation-ministry">civil aviation ministry</keyword> has asked for the implementation of <keyword id="6359833" type="ORGANIZATION" weightage="20" keywordseo="Goods-and-Services-Tax">goods and services tax</keyword> (<keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword>) to be postponed by two months, saying that airlines need more time to revamp their systems so that they can be compatible with GST. GST is scheduled to be implemented from July 1, for which preparations are at an advanced stage. Airline carriers in India, including the state-run <keyword id="2573" type="CITY" weightage="20" keywordseo="Air-India">Air India</keyword>, have expressed their concerns over several aspects of GST. As per airline officials, making changes in the global ticket distribution system that matches with GST needs time. Also, there is a lack of clarity over certain areas related to the business of these airlines, which is a cause of concern. These concerns include the possibility of movement of "stocks (equipment or aircraft parts)" being taxed under GST.

Need two more months for GST, Civil Aviation Ministry tells government

The <keyword id="53054" type="ORGANIZATION" weightage="100" keywordseo="Aviation-ministry">aviation ministry</keyword> is reeling under pressure from political leaders who want ‘extra comfort’ while flying private airlines. Days after MPs like <keyword id="139929" type="PERSON" weightage="20" keywordseo="Ravindra-Gaikwad">Ravindra Gaikwad</keyword> and <keyword id="167794" type="PERSON" weightage="20" keywordseo="Diwakar-Reddy">Diwakar Reddy</keyword> have made headlines for alleged misbehaviour with airlines staff, the ministry is now planning to ensure the private airlines roll out the red carpet for the netas. According to an Economic Times news report, the ministry of civil aviation (MoCA) has called all private airlines next Friday to discuss the "protocol" they should extend to netas, It’s been a long standing demand coming from MPs and VIPs who want to be feel premium and privileged while flying on people’s money. The news report further mentioned that the ministry has already sent a notice to private airlines and other stakeholders titled "protocol to be extended to VIPs in private airlines". The meeting scheduled is "scheduled to be held under the chairpersonship of the ministry's joint secretary <keyword id="950491" type="PERSON" weightage="20" keywordseo="Usha-Padhee">Usha Padhee</keyword> on June 30..." As per norm, MPs and VIPs mostly fly <keyword id="2573" type="CITY" weightage="20" keywordseo="Air-India">Air India</keyword> as they are entitled to Business Class travel. However for private carriers weren’t supposed to provide ‘extra’ privilege to netas. Some low cost carriers like Indigo and <keyword id="6358032" type="CITY" weightage="20" keywordseo="SpiceJet">Spicejet</keyword> also don’t have business class in their flights. The ministry now plans to ask these carriers to reserve front row seats and subsidised meals for the political leaders when they fly.

You Searched For "aviation ministry scheduled" and got 4 results

Airfares may get costlier this festive season as there's no cap ticket prices from now

IANS

Airlines want budget 2021 to lower jet fuel price and parking charges

Navdeep Yadav

Need two more months for GST, Civil Aviation Ministry tells government

BI India Bureau

Aviation Ministry may ask private airlines to offer VIP treatment to MPs when they fly on public money

BI India Bureau

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