Govt. To Lift Cap On Airfares On Domestic Carriers w.e.f. August 31, 2022

The government shall do away with caps on airfares levied on domestic air carriers during the pandemic in 2020. This shall be implemented from August 31, 2022. The announcement in this regard was made through a notification dated August 10, 2022 by the Ministry of Civil Aviation.

"After review of the current status of Scheduled Domestic Operations viz-a-viz passenger demand for air travel in terms of purpose specified in the initial order Order No. 02/2020 dated 21.05.2020, it has been decided to remove the fare bands notified from time to time regarding the airfares with effect from 31.08.2022," the notifications said.

In an unusual move, the centre regulated airfares by imposing the minimum and maximum price band depending on the flight duration. This was done to avoid sharp rise in airfares due to pent-up demand resulting as a result of the easing of curbs on air travel.

"The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel. Stabilisation has set in & we are certain that the sector is poised for growth in domestic traffic in the near future," Civil Aviation Minister Jyotiraditya Scindia tweeted.

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