Friday, January 08, 2021

Cap on domestic airfare extended till 31 March, but with rules tweaked

India has extended the cap on domestic airfares till March 31.

However, government has made a little tweak to the rules. Airlines will need to sell 20 per cent seats below midpoint of the fare band on each flight instead of 40 per cent as mandated earlier.

Many airlines have opposed the system of government regulating air fare, saying that it impacts their flexibility of offering ticket prices in order to increase passenger occupancy when already air travel is under pressure.

In the wake of coronavirus outbreak, the aviation ministry implemented a cap on domestic airfare till 24 November. India started operating domestic flights after a gap of two months in the last week of May. The domestic flights in India have a cap on fares with both an upper and lower limit.

08/01/21 Arindam Majumder/Business Standard

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