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Major change in airfare rules: Price cap on flight tickets removed
From August 31, the airlines will be free to decide what to charge passengers for the air travel.
New Delhi: From August 31, the airlines will be free to decide what to charge passengers for the air travel. After reviewing the current status of scheduled domestic operations, the Ministry of Civil Aviation has decided to remove the airfare bands from flight tickets. As per the notification issued by the ministry, the new rule will come into effect on August 31, 2022. Airlines have been reporting large losses, but some said that with no restrictions on fares now - both upper and lower limits have been removed - they may discount tickets to ensure that the volume of passengers increases.
Union Civil Aviation Minister Jyotiraditya Scindia had earlier said that these bands were introduced to protect the interests of airlines and passengers. With this development, airfares will again be regulated by the market and the competition is likely to become more intense. "We are certain the sector is poised for growth in domestic traffic": Jyotiraditya Scindia said.
The ministry has also reiterated that airlines and airports should ensure that the guidelines to contain the spread of Covid are strictly adhered to and Covid-appropriate behaviour is enforced strictly during travel.
