Back in May 2020, when Domestic flights were resumed in India, Indian airlines were given two mandates. One, they couldn’t operate beyond 33% of their originally approved schedule for Summer 2020 schedule, and two, their fares were going to have to follow a price band. The price bands were all set up as per the block time of the flight, and not per the distance. The following price bands were imposed:
- Block time less than 40 minutes: Tickets to be priced between INR 2,000 and INR 6,000
- Block time of 40 – 60 minutes: Tickets to be priced between INR 2,500 and INR 7,500
- Block time of 60 – 90 minutes: Tickets to be priced between INR 3,000 and INR 9,000
- Block time of 90 – 120 minutes: Tickets to be priced between INR 3,500 and INR 10,000
- Block time of 120 – 150 minutes: Tickets to be priced between INR 4,500 and INR 13,000
- Block time of 150 – 180 minutes: Tickets to be priced between INR 5,500 and INR 15,700
- Block time of 180 – 210 minutes: Tickets to be priced between INR 6,500 and INR 18,600
Ever since the schedule has been raised to about 60% of the approved schedule and the limits on fares have been increased as well, in the interest of the aviation sector and the public. The current fare caps were scheduled to expire on November 24, 2020. However, they have been extended one more time. This was announced by the Civil Aviation Ministry during a presser last evening.
Apart from this, earlier on in October 2020, it was also decided that the lower end of the fare limits would also be applicable for Premium Economy tickets going forward too.
This non-free market operation where airlines have not been allowed to set their own fares are of course, harmful in the long run for airlines who have not been given any financial assistance by the government in the first place. But, for those who want to fly, this could be good news, as they get fares now, which are much cheaper than usual.
The airlines have also been told that when the levels go closer to pre-covid levels (we have to double the traffic from current numbers to get there), these fare caps will be removed.
What do you think of the current move to keep fare caps on air travel?
Liked our articles and our efforts? Please pay an amount you are comfortable with; an amount you believe is the fair price for the content you have consumed. Please enter an amount in the box below and click on the button to pay; you can use Netbanking, Debit/Credit Cards, UPI, QR codes, or any Wallet to pay. Every contribution helps cover the cost of the content generated for your benefit.
(Important: to receive confirmation and details of your transaction, please enter a valid email address in the pop-up form that will appear after you click the ‘Pay Now’ button. For international transactions, use Paypal to process the transaction.)
We are not putting our articles behind any paywall where you are asked to pay before you read an article. We are asking you to pay after you have read the article if you are satisfied with the quality and our efforts.