New Delhi: Civil Aviation Ministry on Friday (May 28) has increased the lower limit on fares of domestic air travel by 15%. The revision of rates will come into effect from June 1, according to an official order by the ministry.
Why airfares have been increased?
Air carriers in India are facing massive losses, as travellers aren’t feeling comfortable flying amid the rising cases of Covid-19 in the country. The second wave of Covid-19 has made the situation worse for firms operating passenger flights.
As a result, the aviation ministry has decided to increase the airfares. The decision is aimed at supporting the airlines amid a devastating second wave of COVID-19 which has reduced air travel significantly. Meanwhile, the aviation ministry has also decided to cut the network capacity to airlines.
What are the revised airfares?
The lower limit for flights under 40 minutes of duration had been increased by 13% to Rs 2,600 from Rs 2,300, according to the Ministry’s official notification. The maximum fare for such flights is capped at Rs 7,800.
Likewise, lower limits for flights with a duration between 40 minutes and 60 minutes has been increased to Rs 3,300 from Rs 2,900 now. The maximum fare for such flights is set at Rs 9,800. It is important to note that the upper limits on fares remain unchanged.
What are lower and upper limits on airfares?
Last year when India imposed a national lockdown, the aviation ministry decided to set lower and upper limits on airfares to protect customers from paying exorbitant prices. The airfares are based on flight duration.
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