New Delhi. The Union Aviation Ministry has made a big announcement on Wednesday. The government said that after a period of about 27 months, the limits imposed on domestic airfares will be removed with effect from August 31, 2022. Aviation Minister Jyotiraditya Scindia said on Twitter that, ‘The decision to remove Air Fare Caps has been taken after analysis of daily demand and price of Air Turbine Fuel ie ATF price. The situation has started stabilizing and the sector is poised for an increase in domestic traffic in the near future.
The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel. Stabilisation has set in & we are certain that the sector is poised for growth in domestic traffic in the near future. https://t.co/qxinNNxYyu
— Jyotiraditya M. Scindia (@JM_Scindia) August 10, 2022
“After review of the current status of scheduled domestic operations viz-a-viz 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, 2022,” the aviation ministry stated in the order.
The decision to remove airfare caps from the airlines will bring relief to airlines including IndiGo, SpiceJet Ltd, Air India, and Vistara – a joint venture between the Tata Group and Singapore Airlines – as well as new entrant Akasa Air. The decision will allow the airlines to price tickets freely.
It is noteworthy that on the resumption of air service on 25 May 2020 after a two-month lockdown imposed due to the corona virus epidemic (COVID-19 pandemic), the ministry has decided to lower and upper fares on domestic airfares based on the duration of the flight. limit was imposed.
In fact, the government had imposed a lower limit to protect air travelers from high fares and an upper limit to protect financially weak airlines. However, airlines and airport operators should ensure that the guidelines to prevent the spread of corona virus are strictly followed and appropriate behavior is strictly enforced by them during travel.