India

From September 1, airlines to decide the air fare on their own

The government has decided to remove the air fare cap of domestic airfares with effect from August 31. This means that from September 1, airlines will be able to fix the fare according to their own. In view of the situation of Corona, the government had fixed this limit for air travel fare about 27 months ago.

Civil Aviation Minister Jyotiraditya Scindia tweeted on Wednesday, ‘The decision to remove the air fare limit has been taken after careful analysis of the daily demand and prices of Air Turbine Fuel (ATF).’

ATF prices hit record highs after the war between Russia and Ukraine that began in February, which has been declining for the past few weeks. On August 1, the price of a kiloliter (1,000 litre) of ATF in Delhi was Rs 1.21 lakh, which is 14 per cent lower than the previous month.

The minimum and highest fare limit was fixed in 2020

When domestic flights started on May 25, 2020, after a two-month lockdown due to Corona infection, the government had fixed the minimum and highest fare limit based on the flight time.

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