Government removes cap on airfares with effect from 31 August

India will remove the fare caps it imposed on domestic airlines in 2020 during the pandemic with effect from 31 August. The announcement was made by Ministry of Civil Avation via a notification issued on 10 August 2022. This order will lift restrictions on ticket prices.

The government, in a rare move, had regulated fares by imposing a minimum and maximum band based on the flight`s duration to prevent ticket prices from spiking due to pent-up demand arising from an easing of restrictions on air travel, a Reuters report said.

"After review of the current status of Scheduled Domestic Operations viz-a-viz passenger demand for air travel in terms of purpose specified in the initial order Order No. 02/2020 dated 21.05.2020, it has been decided to remove the fare bands notified from time to time regarding the airfares with effect from 31.08.2022," the notifications said.

"The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel. Stabilisation has set in & we are certain that the sector is poised for growth in domestic traffic in the near future," Civil Aviation Minister Jyotiraditya Scindia tweeted.

See Tweet Here: 

The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel. Stabilisation has set in & we are certain that the sector is poised for growth in domestic traffic in the near future. https://t.co/qxinNNxYyu

— Jyotiraditya M. Scindia (@JM_Scindia) August 10, 2022