Govt removes fare cap imposed on domestic airlines from Aug 31

The Ministry of Civil Aviation (MoCA) has decided to withdraw the fare cap on air tickets imposed due to Covid-19 in 2020. The cap on fares will be removed from August 31.

“After review of the current status of Scheduled Domestic Operations viz-a-viz passenger demand for air travel, it has been decided to remove the fare bands notified from time to time regarding the airfares with effect from 31.08.2022,” the ministry tweeted on Wednesday.

Union Minister for Civil Aviation Jyotiraditya Scindia said that the decision has been taken after careful analysis of daily demand and prices of air turbine fuel.

The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel?

Fare caps have been in place since domestic flight operations resumed in the wake of the Covid-19 pandemic on May 21, 2020.

All the airlines have been informed about the order. The airlines will now be free to charge as per market forces of demand and supply.

For passengers, this could mean lower fares in the off-season to fill up planes and even higher fares in the coming busy travel season.