Domestic Airfare: The capping system implemented for fares of domestic flights will now be applicable till 31 May 2021. The Directorate General of Civil Aviation (DGCA) has issued an order for this.
New Delhi: Domestic Airfare: Airfare capping system implemented for fares of domestic flights will now be applicable till 31 May 2021. The Directorate General of Civil Aviation (DGCA) has issued an order for this. Prior to this, the system of capping on these fares was implemented till 31 March 2021, before which its deadline was increased several times.
Judging by the increasing Corona cases
Let us tell you that due to the previous Corona epidemic, domestic and foreign airlines were banned. Then two months later in May, flights were allowed to operate, but the government capped the fares. Once again, in view of the second wave of Corona epidemic, the government has decided to pursue this system.
Capping on fares till 31 May
The order issued by the DGCA states that the fixed fare limit for domestic airlines will remain in force till 31 May 2021, which was earlier applicable till 31 March 2021, before the maximum and minimum fare of 24 February. Was extended till
Air tickets will be available only cheap
Capping the fares meant that airlines would now have to sell only 20 per cent of the tickets at a rate below the midpoint of the minimum and maximum fares, as they have been doing so far. However, before the deadline of 31 March, airlines were selling 40% tickets at a rate below midpoint. Let us tell you that flights have been started from 25 May 2020 last year.
Airlines also opposed capping
Airlines had also opposed the government’s move, with airlines saying for some time that jet fuel (ATF) prices had risen significantly since the regulations came into force in May and operating costs have increased, hence ticket fares. The limit should be increased or removed. Let us tell you that jet fuel is about 40 percent of the total operating cost of the airline.
The government has ordered 80 percent of its full capacity flights for the airlines, but considering the low number of passengers, this is a loss deal for the airlines. Airlines have also been appealing to the government to remove this cap.
The fare was divided into 7 categories
In May last year, the aviation ministry had divided the domestic flights into seven categories based on flight times. In this, the ticket rate was fixed at 2,000 to 6,000 rupees for flights less than 40 minutes and 6,500 to 18,600 thousand rupees for 3 to three and a half hours.
