Synopsis: The Ministry of Civil Aviation has, as of today, abolished the price limitations on Indian domestic airlines in accordance with the most recent developments. price limitations have been eliminated, all domestic airlines are free to set their own prices for domestic flights
The Ministry of Civil Aviation has, as of today, abolished the price limitations on domestic flights in accordance with the most recent developments. This action was first taken when COVID struck the country, and it has now been carried out after a period of almost 27 months.
Now that price limitations have been eliminated, all domestic airlines are free to set their own prices for domestic flights and are no longer compelled to control ticket prices in accordance with fare caps established by the Ministry of Civil Aviation.
The Aviation Ministry claimed earlier this month that the decision to eliminate airfare caps was made following a detailed examination of daily demand and air turbine fuel prices (ATF).
Following the news, Union Aviation Minister Jyotiraditya Scindia stated that the situation has stabilized and that they are confident the industry will soon see an increase in domestic traffic.
According to reports, ATF prices are also declining after rising to record highs, largely as a result of the Russia-Ukraine conflict that started in February. Slowly and gradually tourism in India is catching up after two years of hiatus.
Why did the government impose these flight cap restrictions?
In order to control airfares when services return on May 25, 2020, MoCA had already set higher and lower limitations on domestic airfares based on flight durations.
With the implementation of the ticket caps, airlines were no longer permitted to charge a customer for domestic flights lasting under 40 minutes less than INR 2900 (excluding GST) and more than INR 8800 (excluding GST).
If stories are to be believed, the lower limitations were put in place to safeguard the financially weaker airlines while the upper caps were put in place to protect consumers from rising prices.