Are you planning to travel during the upcoming festival season? if yes here is the good news for you..
Aviation Minister Jyotiraditya Scindia has tweeted about the decision of removing the caps price of domestic ticket after careful analysis of the daily demand and price of Air Turbine Fuel (ATF) stabilization has been set. so that we can expect the poised for growth in the domestic airline sector in the near future. Mr Scindia also said that the decision will helps to increase the Passenger Load Factors (PLF) in domestic airlines sector which will benefit domestic travelers with better PLF by removing domestic flight tickets price caps.
Airfare Cap was initially imposed when Covid19 hit the nation and during the Covid19 pandemic in 2020. Scheduled domestic flights were suspended for more than two months from late March 2020, With the airfare caps implemented the domestic airlines were not able to charge their passenger less than INR 2.900 and more than INR 8.800 (Including GST) for domestic flights of less than 40 minutes. However after a span of approximately twenty seven months Ministry of Civil Aviation earlier officially announced that airfare caps will be removed for domestic flights with effect from 31 August 2022. amid the domestic air traffic being on the recovery path as well as a relative decline in jet fuel prices.
Airlines on airfare caps removed
Indigo Airlines (Largest carrier of the nation) said that decision of removal airfare caps will help airlines to increase their Passenger Load Factor by domestic flight tickets price caps offering low price and Vistara Airlines (Second largest carrier of the nation) spokesperson said to Press Trust of India (PTI) that in a free market scenario airfares are an outcome of a multitude of factors such as the operational environment, dynamics of demand and supply, seasonality, cost, competition, market sentiment and taxation, As far as Vistara is concerned we will continue to have a balanced pricing strategy.
05 Sep 2020 By Hindustan View