Fare cap on domestic airlines to be removed from August 31: Civil Aviation

Airplane at Jaipur airport
Airplane (Image: Meel Bijendra/Agrika

India’s civil aviation ministry has announced that from August 31 2022 all fare caps on domestic airlines will be removed. The Indian government on 21 May 2020 had set minimum and maximum price bands for airfares based on flight duration during the coronavirus pandemic to control fares.

Aviation Minister Jyotiraditya Scindia said that due to air turbine fuel (ATF) and rising passenger demand, it has been decided to remove the minimum and maximum price bands from airfares.

Due to the Russia-Ukraine war, the price of ATF (Air Turbine Fuel) was increased by two and a half times per kiloliter but has now declined by about 15%.

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These days the passenger numbers were touching the pre-Covid levels. Due to the easing of restrictions on air travel, the government was concerned that the sudden increase in daily demand should not make flight tickets too expensive, so the fare cap was imposed.

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