The limit imposed on the fare of domestic air travel will end from August 31. In such a situation, it is possible to change the ticket price after this. Due to Corona, the maximum and minimum fare limit was fixed about 27 months ago.
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Expansion
Now the airlines will be free to decide what the passengers will be charged for the ticket. Actually, the government is going to completely remove the air fare band imposed during the Corona epidemic. This will come into effect from August 31. The upper and lower limits of airfare are being removed. This can bring relief to the airlines as well as the passengers. Airlines may give discounts in tickets to ensure an increase in the number of passengers.
'There will be a reduction in passenger fares'
"I consider this a positive initiative for the commuters as it will bring down the fares," said Vinamra Longani, Head of Operations, Sarin & Co. Aviation expert Parvez Damania said, "I think this is a great move for the consumers as well as the airlines."
What did Jyotiraditya Scindia say?
Aviation Minister Jyotiraditya Scindia tweeted that the decision to remove the airfares limit has been taken after careful analysis of daily demand and air turbine fuel prices. Stabilization has begun and we are certain that the region is poised for increased domestic traffic in the near future.
The fares were regulated by imposing minimum and maximum bands depending on the duration of the flight to prevent an increase in ticket prices due to demand arising from the easing of restrictions on air travel.
The aviation industry was badly affected during the pandemic. Airlines have been demanding removal of the price band for domestic airfare ever since the corona pandemic subsided.
Air fare cap is currently applicable for 15 days
The air fare cap is currently applicable on a rolling basis for a cycle of fifteen days. That is, airlines are free to fix the price of tickets after a period of fifteen days from the date of booking.
Let us understand this 15 day cap through an example. If a person has to go from Ahmedabad to Mumbai from August 15, then he will have to pay around Rs 4200 for Akasa Air flight. The ticket price will remain roughly the same for the next 14 days from the date of August 15. But as soon as you see the fare for the 15th day, it will be almost half. That is, you will get this ticket for 2100 rupees.
That is, if the airlines makes you cheaper only after fifteen days. But now after the removal of these price bands from the government, airlines can offer cheaper tickets anytime.
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