Domestic fare cap extended for three months: Hardeep Puri

Our Bureau New Delhi | Updated on October 30, 2020 Published on October 29, 2020

Ticket counter of Indigo Airlines (file photo)   -  Reuters

Domestic air fares will remain capped at the upper and lower levels for another three months, Hardeep Puri, Minister of State for Civil Aviation, said on Thursday.

“We have progressed… but I think we need a little more cushion. Even though we are extending it by three months, if by the end of the year we find an appreciable improvement in the situation and we are reaching pre-Covid levels, I would have absolutely no hesitation if our colleagues do not want us to utilise price ban for the full three-month period,” Puri said, announcing the extension of the domestic fare cap.

Domestic airfares were capped at the higher and lower level when flying restarted on May 25. The decision to cap domestic air fares was taken to ensure that “fares do not go out of control and are reasonable for the airlines also,” Pradeep Kharola, Secretary, Civil Aviation, had said then.

Announcing the fare cap in May, Puri had said that on the Delhi-Mumbai route, the minimum fare will be ₹3,500 and the maximum ₹10,000. The actual cost of the one-way ticket will be slightly higher as the passenger will have to bear the cost of User Development Fund, the Security fee and GST.

In May, Kharola had said that while the upper and lower level for a one-way flight ticket has been stipulated, the government has also stated that at least 40 per cent of the seats have to be sold at a fare that is less than the mid-way point of band, which is approximately ₹6,700 or below in case of a one-way Delhi-Mumbai flight ticket.

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Published on October 29, 2020
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