Earlier this month, the Civil Aviation Ministry in its order said that after analyzing the current situation, it has been decided to withdraw the price cap. Airlines had been pressurizing the government to withdraw the price band for some time. Seven bands were issued to impose a Price cap.
There is good news for those who travel by air. There is going to be a change in the rules of air ticket prices from 31 August i.e. today. After this change, air travel can be cheaper, due to which people will get relief in the festive season. From Wednesday, the Civil Aviation Ministry will remove the price cap on domestic air fares. During the Kovid epidemic, the government imposed an upper and lower limit cap on air travel fares. All airlines were following this rule of the government. Because of this, she was not able to offer customers tickets.
Price cap was affecting the recovery
Earlier this month, the Ministry of Civil Aviation in its order said that it has been decided to withdraw the price cap after analyzing the current situation. Airlines had been pressurizing the government to withdraw the price band for some time. He said that the caps are affecting his recovery after the slowdown of the pandemic.
Companies will decide the fare according to their own
After removing the price cap on air tickets, airline companies will be able to reduce and increase the fare according to their own. In May 2020, the government imposed a price cap on airfare. Now it will be removed from August 31 after a gap of 27 months. In May, Union Aviation Minister Jyotiraditya Scindia had said that high ATF prices and other domestic reasons had encouraged the government to continue with the price cap.
Why was there a price cap?
When the airline started operations after a gap of two months in May 2020 after the lockdown due to Kovid, the government imposed a market cap on the airfare. The government had imposed the minimum fare so that the interests of airlines could be protected. Also, the maximum cap was imposed so that the passengers do not have to pay more fare.
What was the maximum rent?
The government had issued seven bands to impose a price cap on rent. Under this, fare bands were fixed for flights of up to 40 minutes to flights of 180-210 minutes. As per the rules, the minimum airfare for a flight of less than 40 minutes was fixed at Rs 2,900 (excluding GST) and a maximum of Rs 8,800 (excluding GST) and a maximum of Rs 8,800 (excluding GST).