Domestic flights to get dearer as government raises airfares up to 13%
The lower limit for the first band, which consists of flights that are of less than 40 minutes, was increased from Rs 2,600 to Rs 2,900. The upper limit in this band was increased from Rs 7,800 to Rs 8,800.
FollowDomestic aviation is set to become costlier as the Civil Aviation Ministry raised the lower and upper limit on fares by 9.8-12.8%.
The lower limit for the first band, which consists of flights that are of less than 40 minutes, was increased from Rs 2,600 to Rs 2,900. The upper limit in this band was increased from Rs 7,800 to Rs 8,800.
India had imposed lower and upper limits on airfares based on flight duration when services were resumed on May 25, 2020, after a two-month lockdown imposed due to coronavirus.
The lower caps were imposed to help the airlines that have been struggling financially due to coronavirus-related travel restrictions. The upper caps were imposed so that passengers are not charged huge amounts when the demand for seats is high.
In an order dated August 12, 2021, the ministry increased the lower limit for flights under 40 minutes of duration from Rs 2,600 to Rs 2,900 -- a rise of 11.53%. The upper cap for flights under 40 minutes of duration was increased by 12.82% to Rs 8,800.
Similarly, flights with duration between 40-60 minutes have a lower limit of Rs 3,700 rather than Rs 3,300 now, the order said. The upper cap on these flights was increased by 12.24% to Rs 11,000 on Thursday.
The flights with duration between 60-90 minutes have a lower limit of Rs 4,500 -- a rise of 12.5 percent. The upper cap on these flights was increased by 12.82% to Rs 13,200 on Thursday.
Now, domestic flights of duration between 90-120, 120-150, 150-180 and 180-210 minutes have lower caps of Rs 5,300, Rs 6,700, Rs 8,300 and Rs 9,800, respectively, as per the ministry's order.
Till date, domestic flights of duration between 90-120, 120-150, 150-180 and 180-210 minutes had the lower limits of Rs 4,700, Rs 6,100, Rs 7,400 and Rs 8,700, respectively.
The lower cap on flights between 120-150 minutes duration was increased by 9.83% to Rs 6,700, as per the new order.
On Thursday, the upper caps on domestic flights of duration between 90-120, 120-150, 150-180 and 180-210 minutes were increased by 12.3%, 12.42%, 12.74% and 12.39%, respectively, as per the order.
The caps mentioned by the government in its order doesn't include the passenger security fee, user development fee for the airports and therefore the GST. These charges are added on top when the ticket is being booked by the passenger.
The ministry's order on Thursday stated that the government has taken this decision of accelerating the lower limits also because the upper limits keeping in mind the "prevailing situation of Covid-19" in the country.
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