No limit on domestic airfares from tomorrow. Will flight tickets be cheap?

After a period of about 27 months, the limit imposed on domestic airfares will be removed from August 31, the Union Aviation Ministry had informed earlier this month.

“After a review of the current status of scheduled domestic operations, such as passenger demand for air travel… it has been decided to remove the fare band notified from time to time. airfares With effect from August 31, 2022,” the Civil Aviation Ministry said in an order.

Will domestic airfares come down?

From tomorrow, August 31, as there is no longer a price cap, airlines can charge whatever they deem fit for passengers. Airlines may offer discounts in flight ticket prices to attract more passengers. Earlier, airlines could not offer discounts due to lower and upper price limits on domestic airfares imposed by the government.

Why did the government decide to remove the cap on domestic airfares?

“The decision to remove the airfare cap has been taken after careful analysis of daily demand and Air Turbine Fuel (ATF) prices. Stabilization has begun and we are certain that the sector is poised for increased domestic traffic in the near future. Is.” Aviation Minister Jyotiraditya Scindia had tweeted.

ATF prices have declined during the past few weeks after jumping to record levels due to the Russo-Ukraine war that began on February 24.

Why did the government impose a lower and upper cap on domestic airfares?

The government imposed lower and upper limits on domestic airfares in May 2020 as air travel resumed following the nationwide COVID-19 lockdown. While the government allowed 100 per cent capacity deployment in October 2021, it continued with pricing regulation. There were lower caps to protect financially weaker airlines and upper caps to protect passengers from higher fares.

For example, airlines currently cannot charge a passenger a minimum fee of 2,900 (excluding GST) and above 8,800 (excluding GST) for domestic flights of less than 40 minutes.

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