Saturday, May 29, 2021

Domestic air travel to become costlier as govt hikes lower limit on fares

Domestic air travel is set to become costlier as the Civil Aviation Ministry on Friday raised the lower limit on fares by 13 to 16 per cent, according to an official order.

The increase in airfares will come into effect from June 1, it said. The upper limits on fares remain unchanged. The move is aimed at helping the airlines amid a devastating second wave of Covid-19 which has reduced air travel significantly.

India had imposed lower and upper limits on airfares based on flight duration when services were resumed on May 25 last year after a two-month lockdown.

On Friday, the official order said the lower limit for flights under 40 minutes of duration will be increased from Rs 2,300 to Rs 2,600 an increase of 13 per cent.

Similarly, flights with duration between 40 minutes and 60 minutes will have a lower limit of Rs 3,300 instead of Rs 2,900 now, the order said.

The move comes just over three months since the last hike in domestic air fares. In February 2021, the government had raised airfare by 10-30 per cent; the lower and upper limit price for the under-40 minute time band was hiked from Rs 2,000-Rs 6,000 to Rs 2,200-Rs 7,8000' while for flights. For flights with duration of 40-60 minutes, the lower and upper limits of airfare were increased to Rs 2,800-Rs 9,800 from Rs 2,500 - Rs 7,500.

29/05/21 PTI/Business Today

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