Government extends cap on airline capacity till the end of March, fares likely to rise 30%
Thus far, however, no carrier has been able to deploy around 70 percent capacity of what they operated during the winters of 2020, apart from Indigo February 11, 2021 / 04:46 PM IST
The government on February 11 has extended the cap on capacity and control on airfare till 31 March.
In a bid to help airlines maintain their balance sheets, it has increased the upper and lower cap on airfare by up to 30 percent. This will take be effective immediately, the Directorate General of Civil Aviation (DGCA) said in a statement.
With the cap on airfare now increased, airlines can now charge more from its customers. For example, flights that have a duration of 90 to 120 minutes now have the lower fare cap increased to Rs 3,900 from Rs 3,500.
Read more about Price bands in airfares to be discontinued: Hardeep Singh Puri on Business Standard. Puri said capping of airfares was an extraordinary measure
Price bands in airfares to be discontinued with flight services reaching pre-COVID level: Puri
Puri further said the floor and the ceiling price on airfares was an extraordinary measure which was necessitated by an extraordinary situation. PTI February 10, 2021 / 06:26 PM IST
Emphasising that capping of airfares was an extraordinary measure , Union Minister Hardeep Singh Puri on Wednesday said the price bands are expected to be done away with once flight services reach pre-COVID-19 levels.
Replying to questions in the Rajya Sabha, the minister said the civil aviation sector was completely closed down on March 23, 2020, and was reopened on May 25 in a slow and calibrated manner by putting in place SOPs, provisions for seamless contactless travel and a large number of other measures.
Emphasising that capping of airfares was an "extraordinary measure", Union Minister Hardeep Singh Puri on Wednesday said the price bands are expected to be done away with once flight services reach pre-COVID-19 levels.