Air travel to be costlier as government raise fare limit by up to 30%

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The increase in minimum and maximum cap on fares across airlines by the Ministry of Civil Aviation will make air travel costlier.  According to the notification issued on Thursday, the limits on airfares is increased by 10-30 percent. This increase in prices is done to bring relief to the financially distressed aviation industry, which was badly affected due to the pandemic.

The reports suggest that the government-imposed fare restrictions via bands as air travel resumed operations in May. These flight restrictions were imposed to make sure that the customers won’t be affected by the dynamic pricing.  The flights in the first band had a duration of fewer than 40 minutes. The minimum limit in this band is increased to Rs 2200 from Rs 2000. The maximum limit is now increased to Rs 7800 which was earlier Rs 6000. The revised maximum and minimum for flights having a duration of 40-60 minutes are Rs 2800-Rs 9800, Rs 3300-Rs 11700 for durations of 60-90 minutes, Rs 3900-Rs 13000 for 90-120 minutes, Rs 5000-Rs 16900 for 120-150 minutes, Rs 6100-Rs 20400 for 150-180 minutes, Rs 7200-Rs 24200 for 180-210 minutes.

According to the ministry of civil aviation, the revised rates are applicable till march 31st until further announcements. The government had allowed airlines to sell up to 20 percent of air tickets below average fare during January. 

The latest decisions have raised the hope of airlines and the executives of the airlines have welcomed the decisions and expect that government will remove the restrictions imposed soon, the rise in prices is a relief to airlines due to the increase in fuel prices. The official of a low-cost airline said that the decision by the government will allow airlines to raise the base price for the new median range.

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