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Domestic Airfare Caps to be Removed from Aug 31

Story Highlights
  • Centre to lift bar on domestic airfare from 31st August.
  • Airlines to offer discounted price to boost the passenger flow.
  • Aviation Minister Jyotiraditya Scindia made the announcement on his Twitter handle.

New Delhi: With effect from August 31, the DGCA has announced to remove all limitations on ticket prices by lifting the airfare caps that were set on domestic airlines in 2020 during the pandemic. The country’s civil aviation ministry made the announcement on Wednesday, so airlines are now free to set their own prices for customers.

Airlines have been acknowledging significant losses. After the rare step, the government took to set minimum and maximum fee bands based on the length of the flight to prevent ticket prices from growing due to pent-up demand brought on by a relaxation of limitations on air travel. However, several airlines said that since there are no longer any price caps (both upper and lower limitations have been eliminated), they may offer reduced rates on tickets to boost passenger numbers.

After carefully examining daily demand and air turbine fuel prices, it has been decided to eliminate airfare caps. Aviation Minister Jyotiraditya Scindia tweeted, “Stabilization has set in and we are certain that the sector is prepared for development in domestic traffic in the foreseeable future.”

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