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Centre to remove limits imposed on domestic airfares from Aug 31

by TLAteam August 10, 2022August 10, 2022
written by TLAteam August 10, 2022August 10, 2022
Centre to remove limits imposed on domestic airfares from Aug 31

After reviewing the current status of scheduled domestic operations viz-a-viz passenger demand for air travel, the Union Aviation Ministry on Wednesday has decided to remove the fare bands notified from time to time regarding the airfares with effect from August 31.

Business News

The decision to remove airfare caps has been taken after careful analysis of daily demand and prices of air turbine fuel (ATF). Stabilisation has set in & we are certain that the sector is poised for growth in domestic traffic in the near future.

ATF prices have been coming down during the last few weeks after jumping to record levels, primarily due to the Russia-Ukraine war that began on February 24.

On August 1, the price of ATF in Delhi was Rs 1.21 lakh per kilo-litre, which was around 14 per cent lower than last month.

The ministry had imposed lower and upper limits on domestic airfares based on flight durations when services were resumed on May 25, 2020 after a two-month lockdown due to the COVID-19 pandemic.

On Wednesday, the Civil Aviation Ministry stated in an order: “After review of the current status of scheduled domestic operations viz-a-viz passenger demand for air travel…it has been decided to remove the fare bands notified from time to time regarding the airfares with effect from August 31, 2022.”

The airlines and airport operators must, however, ensure that the guidelines to contain the spread of COVID-19 are strictly adhered to and COVID-appropriate behaviour is strictly enforced by them during travel, it added.

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