The Aviation Ministry earlier this month while making the announcement stated that the decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel (ATF).
Are you planning to travel during the upcoming festive season? If yes, read on to know how flight ticket fares might spoil or boost your mood.
As per the latest developments, the Ministry of Civil Aviation has removed price caps on domestic airfares with effect from today. This move comes after a span of approximately 27 months, and it was initially implemented when COVID hit the nation.
Now, with the removal of price caps, all domestic airlines have the freedom to decide fares on domestic routes and will no longer be required to regulate air tickets according to fare caps set by the Ministry of Civil Aviation.
The Aviation Ministry, earlier this month, stated that the decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel (ATF).
After the announcement, Union Aviation Minister Jyotiraditya Scindia tweeted, stating that stabilisation has set in and that they are certain that the sector is set for growth in domestic traffic in the near future.
As per the reports, ATF prices are also coming down after jumping to record levels, primarily due to the Russia-Ukraine war that began in February.
Why did the government implement these airfare caps?
MoCA had earlier imposed upper and lower limits of domestic airfares, with an intention to put air fare in check, based on flight durations when services were resumed on May 25, 2020. With the airfare caps implemented, the airlines were not able to charge a passenger less than INR 2900 (excluding GST) and more than INR 8800 (excluding GST) for domestic flights of less than 40 minutes.
If reports are to go by, while the upper caps were to protect travellers from higher fares, the lower caps were intended to protect the airlines which were financially weaker.
What will be the effect of this airfare cap removal; will airfares get costlier?
As per the views of aviation experts, the airfares are expected to be stable. It might also happen that airlines gradually lower fares or offer sales to drive the demand and make more sales, which means airfares might go down in certain sectors while the popular sectors might see a rise in airfares.
Further, with the upcoming festival season, the airfares can go up again in view of pent-up travel demand.
However, since the airlines couldn’t offer sales and discounts due to the airfare caps earlier, travellers might be able to save some money on air tickets, depending on where they decide to travel.
Source: indiatimes
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