Airlines will now be unrestricted in their ability to set plane ticket prices. In reality, the government had instituted a cap on airfare during the Corona crisis, which it will now entirely abolish. The maximum and minimum airfares are being eliminated. August 31 will be the effective date of the new policy. Currently, the fair cap is applicable in rolling 15-day intervals. In other words, after 15 days from the date of booking, airlines are free to set their own ticket prices.
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Price cap imposed in May 2020
The Aviation Ministry set lower and maximum limitations on airfare depending on flight time when services resumed on May 25, 2020, following a two-month closure caused by Corona.
What is a price cap?
An illustration will help you understand the 15-day limit. If, after 5 days, you must go from Jaipur to Kolkata, the cost of the Indigo flight will be around 5400 rupees. In 14 days from today, this ticket price will be nearly unchanged. However, the 25th (15th day) fare is nearly half of the 25th. In other words, you will receive a 2700 rupee ticket. In other words, despite the airline’s desire to provide passengers with affordable tickets, the price cap prevents it from doing so. For this, he must wait 15 days.
Airlines may give discounts on tickets
SpiceJet, Air India, Indigo, Vistara, and the new airline Akasa, among others, will feel a great deal of comfort from the decision to lift the airfare cap from the airlines. In fact, there is a noticeable limit to domestic air travel in India. The number of passengers is approaching the pre-Corona level. The earnings of the airlines have soared as a result. For all passengers, this is advantageous. Airlines may provide price reductions on tickets to attract more customers.
Decision after fuel demand analysis
The decision to abolish the airfare cap was made after thorough consideration of the daily demand for and pricing of jet fuel, according to Jyotiraditya Scindia, minister of civil aviation. Ever since the corona pandemic subsided, airlines have demanded that the price band on domestic airfare be removed. The price cap, according to the airlines, acts as a barrier to the full recovery of domestic air traffic.
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