Domestic Airfares have Increased Up To 30%

With passenger capacity remaining at 80%, the fare hike may benefit the current loss-incurring domestic airline sector. The passengers Not so much
Fare caps of 10-30% have been set for domestic airlines
Fare caps of 10-30% have been set for domestic airlines

Domestic airfares has been hiked by up to 30% by the Indian government, no changes have been made to the passenger capacity that is set at 80%.

Last week, the Ministry of Civil Aviation extended the cap on price bands of domestic flights until March 31. It has been noted that the lower and upper fare caps were extended to 10% and 30% respectively.

Last year, due to the lockdown and suspension of services for nearly two months, the Centre had imposed a cap on domestic airfare after flights resumed on May 25.

At present, airlines have to sell a minimum of 20% seats whilst charging airfares that are below the midpoint of the minimum and maximum slabs.

According to the latest order, airlines will be allowed to charge more from passengers as the government has increased the upper and lower limits of the price bands.

The government has allowed domestic flights to operate up to 80% of the pre-COVID-19 passenger capacity. Regarding the same, Union Civil Aviation Minister Hardeep Singh Puri said that the minimum and maximum fare bands will not be a permanent feature. They will be removed once passenger rush returns to pre-COVID-19 numbers. 

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